WORLD TRADE  
ORGANIZATION  WT/REG212/2/Rev.1 
WT/REG213/2/Rev.1 
WT/REG214/2/Rev.1 
23 December 2009 
 (09-6543) 
Committee on Regional Trade Agreements  
  
 
    
 
 
FACTUAL PRESENTATION 
 
Free Trade Treaty between Mexico and the 
Northern Triangle - El Salvador, Guatemala 
and Honduras 
(Goods and Services) 
 
Report by the Secretariat 
 
Revision  
 
 
 
 
This report, prepared for the considerati on of the Free Trade Treaty between Mexico 
and the Northern Triangle - El Salvador , Guatemala and Honduras has been drawn 
up by the WTO Secretariat on its own respons ibility and in full consultation with the 
Parties.  The report has been drawn up in  accordance with the rules and procedures 
contained in the Decision for a Transparency Mechanism for Regional Trade Agreements (WT/L/671).  
 
Any technical questions arising from this report may be addressed to Mrs Maria Pillinini (tel.: +41 22 739 52 44) or Mr Martin Roy (tel.: +41 22 739 61 05).  WT/REG212/2/Rev.1 
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  TABLE OF CONTENTS 
 
 
  Page¨ 
 
I. TRADE ENVIRONMENT 1  
A. O VERVIEW  1 
B. M ERCHANDISE TRADE  1 
C. S ERVICES TRADE  9 
II. CHARACTERISTIC ELEMENTS OF THE TREATY 16  
A. B ACKGROUND INFORMATION  16 
III. TRADE IN GOODS 19  
A. N ATIONAL TREATMENT AND MARKET ACCESS PROVISIONS ON TRADE IN GOODS  19 
1. Import duties and charges, and quantitative restrictions 19 
(a) General provisions 19 
(b) Liberalization of tariff lines and trade 21 (c) Mexico's liberalization schedule 27 
(d) El Salvador's liberalization schedule 34 
(e) Guatemala's liberalization schedule 36 (f) Honduras' liberalization schedule 39 
2. Rules of origin 42 
3. Export duties and charges, and quantitative restrictions 44 4. Regulatory provisions on trade in goods 45 
(a) Standards 45 
(b) Safeguard mechanisms 47 (c) Anti-dumping and countervailing measures 49 
(d) Subsidies and State-aid 49 
(e) Customs-related procedures 49 (f) Other regulations 50 
5. Sector-specific provisions on trade in goods 51 
(a) Trade in agricultural goods 51 (b) Textile products 52 
IV. TRADE IN SERVICES AND INVESTMENT 52  
A. S
COPE AND DEFINITIONS  52 
B. D ENIAL OF BENEFITS  54 
C. G ENERAL PROVISIONS ON TRADE IN SERVICES  54 
1. Market access 54 
2. National and MFN treatment 55 
3. Commercial presence 55 4. Movement of natural persons 56 
5. Performance requirements and restrictions for senior management and board 
of directors 57 
D. L
IBERALIZATION COMMITMENTS  57 
1. Mexico 57 
2. El Salvador 62 WT/REG212/2/Rev.1 
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  3. Guatemala 65 
4. Honduras 68 
E. R EGULATORY PROVISIONS ON TRADE IN SERVICES  72 
1. Domestic regulation 72 
2. Recognition 73 
F. S ECTOR SPECIFIC PROVISIONS ON TRADE IN SERVICES  73 
1. Telecommunication services 73 
V. GENERAL PROVISIONS OF THE TREATY 74  
1. Transparency 74 
2. Current payments and capital movements 75 
3. Exceptions 75 
4. Accession 75 5. Institutional framework 76 
6. Dispute settlement 76 
7. Relationship with other agreements concluded by the Parties 79 8. Government procurement 80 
9. Intellectual property rights 81 
ANNEX I 82 
ANNEX II 94 
 
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  MEXICO AND THE NORTHERN TRIANGLE - EL SALVADOR, 
GUATEMALA AND HONDURAS (GOODS & SERVICES) 
 
Factual Presentation by the Secretariat
 
  
I. TRADE ENVIRONMENT 
A. O
VERVIEW  
1. The Free Trade Treaty between Mexico and the Northern Triangle - El Salvador, Guatemala 
and Honduras (hereinafter the "Treaty") is Mexico's  seventh regional trade agreement (RTA) notified 
to the WTO.  It is the second RTA notified to th e WTO for the Northern Triangle countries, which are 
all also members of the Central American Common Market (CACM). 
2. In 2006 Mexico was the largest economy,  with a GDP of US$839,182 million, while 
El Salvador was the smallest with a GDP of US $18,306 million.  Honduras had the largest trade to 
GDP ratio of 103.3 during the period 2004-2006.  The countries are also quite disparate in terms of their rankings in world trade of goods and services:  El Salvador ranked 79
th and 66th in the world in 
terms of exports of goods and services respectively, and 62nd and 72nd for imports;  Guatemala ranked 
65th and 70th for exports of goods and services, and 50th and 67th for imports;  Honduras 96th and 
88th for exports of goods  and services, and 96th and 87th for imports;  and Mexico 15th and 20th for 
exports of goods and services and 8th and 20th for imports.  Their total and shares of global trade in 
goods and commercial services are given in Table 1.1 below. 
Table 1.1 
Merchandise and commercial services trade, 2006 
US$ million and per cent 
 El Salvador Guatemala Honduras Mexico 
Merchandise trade     
Exports  3,707 6,013 1,929 250,441 
 % of world exports 0.03 0.05 0.02 2.07 
Imports  7,671 11,915 5,418 268,169 
 % of world imports 0.06 0.10 0.04 2.16 
Commercial services     
Exports 1,464 1,292 709 16,372 
 % of world imports 0.05 0.05 0.03 0.59 
Imports 1,458 1,628 994 22,329 
 % of world imports 0.06 0.06 0.04 0.85 
Source : WTO Trade Profiles. 
B. MERCHANDISE TRADE  
3. Developments in merchandise trade during the period 1999-2007 between the 
Northern Triangle (El Salvador, Guatemala and H onduras) and Mexico and with the world are shown 
in Charts 1.1 and 1.2.  The Northern Triangle has experienced a widening trade deficit with the world, 
rising from US$5.6 billion in 1999 to US$15.2 billion in 2007.  Its trade deficit with Mexico has also 
more than doubled during this period from US$789.9 million to US$1.7 billion. WT/REG212/2/Rev.1 
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  4. Mexico's trade with the Northern Triangle and with the world grew steadily during the period, 
especially since 2003.  It has run a small import deficit with the world.  In contrast, its exports to the 
Northern Triangle have grown more rapidly than impo rts, resulting in a growing trade surplus.  At the 
same time, as can be seen in Chart I.2, Mexico's  imports from the Northern Triangle have grown 
steadily. 
 
 
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 
1999 2000 2001 2002 2003 2004 2005 2006 2007 0.00.20.40.60.81.01.21.41.61.82.02.22.42.62.83.0US$ billion  US$ billionChart I.1 - Northern Triangle:  merchandise imports from and
exports to world and Mexico, 1999-2007  
Source :  UNSD, Comtrade database . 
Imports from Mexico
Exports to MexicoTotal imports
Total exportsLeft-hand scale:  Right-hand scale:
 
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0 50 100 150 200 250 300 
1999 2000 2001 2002 2003 2004 2005 2006 2007 0123US$ billion  US$ billionChart I.2 - Mexico:  merchandise imports from and exports to world 
and Northern Triangle, 1999-2007  
  
Source :  UNSD, Comtrade. 
Imports from N. Triangle
Exports to N. Triangle Total imports  
Total exports  Left-hand scale:  Right-hand scale:
 
 
5. Charts I.3 and I.4 respectively, show Mexi co's merchandise imports and exports from the 
world and the Northern Triangle.  The largest shar e of Mexico's imports from the Northern Triangle 
originate in Guatemala, although the share has fallen from 76% in 1999 to 65% in 2007;  imports 
from Honduras grew from 7% to 26% while imports from  El Salvador fell from 17%  to 9% as a share 
of total imports from the Northern  Triangle during this period. 
6. Like its imports, the largest share of Mexico's  exports to the Northern Triangle are destined 
for Guatemala with the share remaining relatively steady between 54%  and 57% during this period.  
In 2007 Mexico exported 25.2% and 18.6% of its expor ts to the Northern Triangle, respectively to 
El Salvador and Honduras. WT/REG212/2/Rev.1 
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  020406080100120140160180200220240260280300
1999 2000 2001 2002 2003 2004 2005 2006 20070.00.10.20.30.40.50.60.70.80.91.0US$ billionChart I.3 - Mexico:  merchandise imports from world and Northern Triangle,
1999-2007
 Imports from El Salvador
 Imports from GuatemalaTotal importsLeft-hand scale: Right-hand scale:
 Imports from Honduras
Source :  UNSD, Comtrade database.US$ billion
 
 
 
020406080100120140160180200220240260280300
1999 2000 2001 2002 2003 2004 2005 2006 20070.00.51.01.52.02.53.0US$billion US$billionChart I.4 - Mexico:  merchandise exports to world and Northern Triangle,
1999-2007
 Exports to El Salvador
 Exports to GuatemalaTotal exportsLeft hand scale: Right hand scale:
 Exports to Honduras
Source :  UNSD-UN, Comtrade database
 
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  7. The commodity composition of trade between the parties and with the world (based on a 
three-year average) is shown in Charts I.5-I.7 on the basis of Harmonized System (HS) sections. 
8. In contrast to Mexico's global imports, 57.32% of which are made up of machinery, vehicles 
and base metals, 64% of its imports from the Northern Triangle are composed of four product 
categories:  textiles, fats and oils, plastics and prepared foods.  These four product categories 
accounted for 63.6% of its imports fro m Guatemala.  A large share of Mexico's imports of textiles and 
clothing originate in El Salvador, which together  with plastics and prepared foods accounted for 
58.3% of imports from the country, while 61.6% of its imports from Honduras were composed of fats 
and oils and textiles.  With rega rd to exports, machinery, motor vehicles and minerals were the three 
largest categories, accounting for 69.2% of its exports.  The largest category, machinery, accounted for 16.3%, 17.8% and 12.9%, respectively, of imports by Guatemala, Honduras and El Salvador, from Mexico. 
9. For El Salvador, 53.2% of its imports from the world were composed of minerals, machinery, 
chemicals and prepared foods.  The bulk of its im ports of minerals originate in Mexico, while 
chemicals, prepared foods and base metals form 49. 3% of its imports from Mexico.  With regard to 
exports, five product categories - prepared foods, ve getables, textiles, base metals and chemicals - 
account for 68.4% of El Salvador's global exports.  Its largest export, prepared foods, formed only 5.2% of Mexican imports from El Salvador.  Text iles, which account for 11.9% of El Salvador's 
global exports, account for 36.5% of Mexican imports. 
10. For Guatemala 56.4% of its global imports ar e composed of four product categories:  
minerals, machinery, chemicals a nd motor vehicles.  Two of these product categories - chemicals and 
machinery - account for 44% of its imports from Mexi co.  Guatemala's world exports consist mainly 
of vegetables, textiles, prepared foods and ch emicals, which make up 69% of total exports.  
Vegetables, however, which account for a quarter of its global exports, are not one of Mexico's major 
imports, and account for 1.5% of Me xican imports from Guatemala.  Textiles and prepared foods, on 
the other hand, which account for 32.8% of Guatem ala's world exports, make up 32.9% of Mexican 
imports. 
11. In the case of Honduras, four product categories - minerals, machinery, chemicals and 
prepared foods - account for 58.8% of its global im ports.  Three of these, chemicals, prepared foods 
and machinery, along with base metals, account for 71% of Honduran imports from Mexico.  Global 
exports are dominated by vegetables, which make up 39.4% of the total, followed by machinery and 
prepared foods.  Mexico's imports of vegetables are negligible, accounting for 0.1% of its imports 
from Honduras.  Fats and oils, however, account for 44.2% of Mexican imports from Honduras, 
followed by textiles and machinery. WT/REG212/2/Rev.1 
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  Chart I.5
Mexico and El Salvador: product co mposition of merchandise trade, 
annual average (2004-06)
Mexico's imports from El Salvador El Salvador's imports from Mexico
 Source:  UNSD, Comtrade database.Per cent
Total:  US$ 55.7 million Total:  US$498.3 million
Total:  US$224.9 billion Total: US$5.4 billion
Total:  US$217.4 billion Total:  US$1.5 billionMexico's global exports El Salvador's global exportsMexico's global imports El Salvador's global importsOther
4.5
Pulp of wood 5.1Other 
5.2
Prepared foods
8.1Other 
9.4
Vehicles 6.7Vegetables  2.5Other
8.9
Minerals 
16.8
Base metals
8.9Animals 2.9
Vegetables 5.0
Prepared foods 2.3
Minerals 14.9Optical 3.5
Vehicles 
15.8Other 
4.6Other 
4.6
Base metals 5.1
Base metals 11.1Chemicals
9.6Prepared foods 
22.8Vegetables 2.4
Chemicals 2.9Base metals 
9.5
Machinery 
38.5Pulp of wood 2.5
Optical 3.6Raw Hides 3.9
Textiles 4.8
Plastics 2.6Minerals
 20.3Textiles 
36.5
Plastics 9.1 
Minerals 5.7
Textiles 11.9Plastics 16.6Machinery
11.6Base metals 6.2Animals 5.7Prepared foods 5.2Pulp of wood 4.7
Chemicals 5.0Chemicals 20.4
Machinery
12.9Prepared foods 8.4Textiles 2.2
Stone, cement 2.7
Machinery
38.3 
Vehicles
10.1Plastics
7.8Chemicals 7.4Machinery 16.4 
Chemicals 11.9Plastics 6.5Pulp of wood 4.5
Textiles 4.0
Textiles 4.2Miscellaneous 3.2Vehicles 2.1Vegetables 2.0
Base metals
7.6
Vegetables 13.0Pulp of wood
7.3Plastics 5.9Machinery 4.9Minerals 4.1Animals 2.5Miscellaneous 2.2
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  Chart I.6
Mexico and Guatemala: product composition of merchandise trade, annual average (2004-06)
Mexico's imports from Guatemala Guatemala's imports from Mexico
 Source:  UNSD, Comtrade database.Per cent
Total:  US$ 269.1 million Total:  US$805.5 million
Total:  US$224.9 billion Total: US$9.3 billion
Total:  US$217.4 billion Total:  US$3.8 billionMexico's global exports Guatemala's global exportsMexico's global imports Guatemala's global importsOt he r
10.4
Pu lp of wo od 5.1Othe r 
8.3
Prepared foods
4.8Ot he r 
9.4
Vehicles 9 .7Veg etables  2.5Other
9.0
Minerals 
17 .0
Base metals
8.9Vegetab les 3 .6
Prepared fo ods 2.3
Minerals 14.9Optic al 3.5
Ve hi cles 
15 . 8Other 
4.6Other 
8.5
Base metals 5.1Base metals 4.3
Che micals
11.1
Pre par ed  foo ds 
15 . 3Vegetables 2.4
Che micals 2.9Base metals 
15.7
Ma ch iner y 
38.5Pulp of wood  2.5
Optical 3.6Base metals 2.7
Te xt iles 8.4
Plastics 2.6Pr epa r ed f ood s 
18 .7
Plastics 9.2 
Minerals 5.7
Te xt iles 17.5Pla stics
20.6
Textiles
14.2Precious stones 11 .9Fats and  oils 10.1Ma ch in er y 3 . 8Miscellaneous 3.2
Chemicals 4.4Chemicals 
27.7
Machinery
16.3Prepared foods
8.2Tex tiles 2. 8
Ma chinery
38.3 
Vehic les
10.1Plastics
7.8Chemicals 7.4Machinery
17 .0  
Chemic als 12.7Plastics 6.6Pulp  of woo d 4.3
Textiles 4.0
Textiles 4.2M iscellan eou s 3.2Vehicles 3.9Stone , cement 2.9
Base metals
6.9
Vegetables
25 . 1
Pla stic s 5.6Machinery 2.8
Minerals 7.5Pu lp of wo od 2. 3
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  Chart I.7
Mexico and Honduras: product composition of merchandise trade, 
annual average (2004-06)
Mexico's imports from Honduras Honduras' imports from Mexico
 Source:  UNSD, Comtrade database.Per cent
Total:  US$ 97.7 million Total:  US$239.4 million
Total:  US$224.9 billion Total: US$4.3 billion
Total:  US$217.4 billion Total:  US$1.5 billionMexico's global exports Honduras' global exportsMexico's global imports Honduras' global importsOther
7.2
Pulp of wood
7.5Other 
6.6
Prepared foods
8.0Other 
9.4
Vehicles 7.0Vegetables  2.5Other
6.7
Minerals 
20.4
Base metals
8.9Vegetables 4.1
Prepared foods 2.3
Minerals 14.9Optical 3.5
Vehicles 
15.8Other 
4.6Other 
5.6
Base metals 5.1Articles of wood 3.9
Animals
8.2
Prepared foods 9.2Vegetables 2.4
Chemicals 2.9Base metals 
13.6
Machinery 
38.5Pulp of wood 2.5
Optical 3.6Chemicals 2.9
Textiles 3.0
Plastics 2.6Minerals 5.7
Chemicals 4.2Fats and oils
44.2
Textiles
17.4Machinery 
16.9Minerals 8.9Vehicles 2.6
Chemicals 
28.1
Machinery
17.8Prepared foods
11.5Miscellaneous 2.5
Machinery
38.3 
Vehicles
10.1Plastics
7.8Chemicals 7.4Machinery
17.9 
Chemicals 12.5Plastics 6.1Pulp of wood 4.8
Textiles 4.0
Textiles 4.2Miscellaneous 3.2Plastics 7.4Stone, cement 2.9
Base metals
7.5
Vegetables
39.4 Fats and oils 4.0
Machinery 
9.4Minerals 6.3Precious stones 2.7Vehicles 2.1
Base metals 3.7Textiles 3.5Miscellaneous 2.0
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  C. S
ERVICES TRADE  
12. Like trade in goods, trade in services reflect s differences between Mexico on the one hand 
and the Northern Triangle countries on the other.  In terms of commercial services trade, Mexico 
ranks 20th in the world for exports and imports.  In comparison, El Salvador, Guatemala and Honduras 
rank 66th, 70th and 88th respectively for exports of commercial services and 72nd, 67th and 87th in terms 
of imports of commercial services. 
13. Chart I.8 shows Mexico's global trade in comme rcial services during 2000-2007.  Its overall 
deficit in services trade widened during the peri od from US$3.6 billion to US$6 billion in great part 
due to strong growth in insurance service imports whose share in total imports increase from 36% to 
46%.  Its largest export consists of travel service s, at 73% of total exports, which continued to 
perform well during this period.  Insurance a nd personal and cultural services accounted for the 
majority of its imports. 
 
024681012141618202224
2000 2001 2002 2003 2004 2005 2006 2007024681012141618202224
2000 2001 2002 2003 2004 2005 2006 2007Chart I.8
Mexico, total commercial s ervices trade, 2000-2007
Exports Imports
Transportation services
Travel services
Communication services
Source:   IMF, BOP CD-Rom.US$ billion
Insurance servicesFinancial services
Royalties and license 
Other business servicesPersonal and cultural services
Government servicesUS$ billion
 
 
 14. Mexico's global position on foreign direct investment (FDI) for the period 1998-2007 is 
shown in Chart I.9.  Since 2000 stocks of both in ward and outward FDI have grown steadily, although 
outward investment at US$45 billion in 2007 was signi ficantly less than inward investment in that 
year (US$266 billion).  Chart I.10 shows the situa tion in respect of FDI flows between Mexico and 
the Northern Triangle countries in the period between the year 2000 and September 2008. WT/REG212/2/Rev.1 
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  050100150200250300
2000
2001
20022003
2004
2005
2006
200705101520253035404550
2000
2001
2002
2003
2004
2005
2006
2007Chart I.9
Mexico inward and outward foreign direct investment stock from world, 2000-07
Inward Outward
Source:  UNCTAD, Foreign Direct Investment databaseUS$ billion
 
 
Chart I.10 
0123456789Millions of US$
El Salvador Guatemala Honduras 2000     2001    2002   2003    2004     2005    2006   2007    2008* 2000     2001      2002      2003       2004      2005     2006        2007    2008-10123456789
Municipal and social services; hotels and restaurants;  professional, technical and personal
Financial services, administration y rental services 
Transports and communications
Trade
Manufactruring industries, including "maquiladoras" 2000      2001        2002       2003        2004        2005       2006        2007       2008*
* Until September 2008.
Figures do not include estimated value of foreign investment already realized but not yet registered in the General Directorate  of Foreign 
Investment (DGIE).Source:  Secretary of Economy, DGIE.
Millions of US$Mexico: FDI from North Triangle countries, 2000-2008 
Flows by country Flows by sector
 
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  15. El Salvador's trade in commercial servi ces during the period 2000-2007 is shown in 
Chart I.11.  Its exports consist mainly of travel services, transportation services and communication services, the share of which rose from 79% to 92% duri ng this period.  Imports are also dominated by 
transportation services and travel services, the share of which rose from 61% to 77%. 
0.00.20.40.60.81.01.21.41.61.8
2000 2001 2002 2003 2004 2005 2006 20070.00.20.40.60.81.01.21.41.61.8
2000 2001 2002 2003 2004 2005 2006 2007Chart I.11
El Salvador:  total commercial services trade, 2000-2007
Exports Imports
Transportation services
Travel services
Communication services
Source :  IMF, BOP CD-ROM.Construction servicesUS$ billion
Insurance services
Financial services
Computer and information services
Royalties and licence Other business services
Personal and cultural services
Government services
 
 
16. El Salvador's total inward and outward FDI duri ng this period is shown in Chart I.12.  Inward 
FDI grew steadily from US$2 billion to US$5.9 bill ion in 2007.  Its outward FDI is significantly 
lower and although its stock of out ward FDI has fluctuated during this period, there has been an 
increase overall from US$74 million to US$384 million.  Sectoral and bilateral FDI data are not available. 
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  01234567
2000
2001
20022003
2004
20052006
20070100200300400
2000
2001
2002
2003
2004
200520062007Chart I.12
El Salvador:  inward and outward foreign direct investment stock from world, 
2000-2007
Inward Outward
Source :  UNCTAD, Foreign Direct Investment databaseUS$ billion US$ billion
 
 
17. Chart I.13 shows Guatemala's total commerc ial services trade for the years 2000-2007.  
During this period, Guatemala's deficit in services trade widened from US$48 million to US$320 million.  Travel services are its largest e xport of commercial services, accounting for 61.7% 
of the total.  Travel and especially transportation services are its largest imports of commercial 
services, their share of total imports ri sing during this pe riod from 73% to 81%. 
 
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  0.00.51.01.52.02.5
2000 2001 2002 2003 2004 2005 2006 20070.00.51.01.52.02.5
2000 2001 2002 2003 2004 2005 2006 2007Chart I.13
Guatemala, total commercial services trade, 2000-2007
Exports Imports
Transportation services
Travel services
Communication services
Source:  IMF, BOP CD-Rom.Construction servicesUS$ billion
Insurance services
Financial services
Computer and information services
Royalties and license Other business services
Personal and cultural services
Government services
 
 
 
18. Guatemala's inward and outward stock of FDI h as continued to grow during this period, as 
shown in Chart I.14.  Outward FDI has grown more  rapidly albeit from a lower base.  Inward FDI 
increased from US$3.4 billion in 2000 to US$6.5 billion in 2007, while outward FDI grew from 
US$69 million to US$352 million in the same period.   Sectoral and bilateral FDI data are not 
available. 
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  0.01.02.03.04.05.06.07.08.0
2000
200120022003
2004
2005
2006200704080120160200240280320360400
2000
2001
2002
2003
2004
200520062007Chart I.14 
Guatemala:  inward and outward foreign direct investment stock from world, 
2000-2007
Inward 
Source :  UNCTAD, Foreign Direct Investment database.US$ billionUS$ billionOutward 
 
 
19. Honduras' trade in commercial services is shown in Chart I.15.  Its main exports of 
commercial services consist of travel services, the share of which has grown from 51% to 74%, 
followed by communication services.  Imports of commercial services are dominated by transportation and travel services, with a share which grew from 77% to 90% during this period.  WT/REG212/2/Rev.1 
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  0.00.10.20.30.40.50.60.70.80.91.01.11.2
2000 2001 2002 2003 2004 2005 2006 20070.00.10.20.30.40.50.60.70.80.91.01.11.2
2000 2001 2002 2003 2004 2005 2006 2007Chart I.15
Honduras:  total commercial services trade, 2000-2007
Exports Imports
Transportation services
Travel services
Communication services
Source :  IMF, BOP CD-ROM.Construction servicesUS$ billion
Insurance services
Royalties and licence Other business services
Personal and cultural services
Government services Computer and information servicesFinancial servicesUS$ billion
 
 
20. Data on Honduras' FDI are available only for th e period 2004-2007.  The trends during this 
period are shown in Chart I.16.  The stock of inwa rd FDI has continued to grow during this period, 
from US$2.3 billion to US$4.3 billion in contrast to outward FDI, growth in which has been relatively 
slow.  Sectoral and bilateral FDI data are not available. 
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  0.01.02.03.04.05.0
2004
2005
2006
2007051015202530
2004
200520062007Chart I.16
Honduras:  inward and outward foreign direct investment stock from world, 
2004-2007
Inward Outward
Source :  UNCTAD, Foreign Direct Investment database.US$ billion US$ billion
 
 
II. CHARACTERISTIC ELEMENTS OF THE TREATY 
A. BACKGROUND INFORMATION  
21. The Free Trade Treaty between Mexico and the Northern Triangle - namely El Salvador, 
Guatemala and Honduras - (hereinafter the "Treaty"),  was signed on 29 June 2000;  it entered into 
force on 15 March 2001 for El Salvador, Guatemal a and Mexico and on 1 June 2001 for Honduras.  
Six notifications were made to the WTO in relati on to this Treaty (see Table II.1), covering in each 
case bilateral trade relations in goods and services between Mexico and El Salvador, Guatemala and 
Honduras, respectively. 
22. The goods aspects of the Treaty were notified to the Council for Trade in Goods pursuant to 
Article XXIV:7(a) of the GATT 1994 and the Unders tanding on the Interpretation of Article XXIV of 
the GATT 1994;  the notification indicates that the Treaty provides for the establishment of free trade 
areas pursuant to Article XXIV of the GATT 1994 be tween Mexico and El Salvador, Guatemala and 
Honduras.  The services aspects of the Treaty were notified to the Council for Trade in Services under 
GATS Article V:7;  the notification specifies that the Treaty liberalizes trade between the Parties as 
under Article V.1 and V.3 of the GATS.  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
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 Page 17 
  
  Table II.1 
Notification to the WTO of the Mexico -Northern Triangle Free Trade Treaty 
Goods aspects Services aspects Treaty 
Date of notification Document Date of notification Document 
Mexico-El Salvador 23 May 2006 WT/REG212/N/1 23 May 2006 S/C/N/367 
Mexico-Honduras 10 July 2006 WT/REG213/N/1 10 July 2006 S/C/N/368/Rev.1 
Mexico-Guatemala 3 July 2006 WT/REG214/N/1 3 July 2006 S/C/N/369 
 
23. The Treaty comprises 21 Chapters, a number of Annexes - included either at the end of their 
respective chapters or at the end of the Treaty - and six Side Letters;  all of these instruments are an integral part of the Treaty.  Box II.1 provides the outline of the Treaty. 
24. The Treaty, of indefinite duration, regulates b ilateral trade between Mexico on the one hand 
and El Salvador, Guatemala and Honduras, on the other;  it does not apply to trade between 
El Salvador, Guatemala and Honduras.
1  The regulatory framework of the Treaty, common to each 
bilateral trade relation, is complemented by coun try-specific Annexes providing for tariff elimination 
(Annex 3-04(5)), and reservations and exceptions for services (Annexes I and II) and for investment 
(Annexes III and IV). 
25. Trade in goods is regulated in Chapters III IX  and XV, trade in services in Chapters X XIII 
and XV, investment in Chapter XIV, and intellectua l property in Chapter XVI;  other Chapters are of 
general application.  Article 1-03 specifies that th e Parties reaffirm their rights and obligations under 
the WTO Agreement;  however, in cases of incompat ibility, the provisions of the Treaty prevail. 
26. At the time of signature of the Treaty, the Par ties also signed a Joint Declaration providing for 
the adoption, at the first meeting of the Treaty's Administrative Commission, of the Regulation of the 
Committee on Regional Integration of Inputs (see pa ragraph 71 below) and for the conclusion of 
discussions prior to the entry into  force of the Treaty regarding (a ) the form and content of the 
Declaration and Certificate of Origin (see paragra ph 93 below);  (b) the Secretariat's National Sections 
in each Party (see paragraph 175 below);  and (c) th e list of arbitrators (see paragraph 177 below). 
27. General definitions, included in Article 2-0, ar e complemented by country-specific definitions 
of "territory" contained in its Annex.  In addition,  Chapter-specific definitions are provided for in the 
first Article of Chapters III-XVI and XX. 
                                                      
1 Trade relations between these countries are re gulated by the Central American Common Market 
(CACM), notified to the GATT 1947 under Article XXIV on 24 February 1961.  The last biennial report on the 
operation of this Agreement was circulated as document  WT/REG93/R/B/2 - G/L/696 of 6 October 2004;  the 
minutes of the meeting in which this report was considered have been circulated in document WT/REG/M/37 of 
20 October 2004. WT/REG212/2/Rev.1 
WT/REG213/2/Rev.1 WT/REG214/2/Rev.1 
Page 18 
  
  Box II.1 
Outline of the Mexico-Northern  Triangle Free Trade Treaty 
 
Preamble 
Chapter I Initial Clauses Chapter II General Definitions 
Chapter III National Treatmen t and Market Access for Goods 
Chapter IV Agricultural Sector Chapter V Sanitary and Phytosanitary Measures 
Chapter VI Rules of Origin 
Chapter VII Customs Procedures for the Handling of Origin of Goods Chapter VIII Safeguard Measures 
Chapter IX Unfair Trade Practices 
Chapter X Cross-border Trade in Services 
Chapter XI Financial Services 
Chapter XII Telecommunications Chapter XIII Temporary Entry for Business Persons 
Chapter XIV Investment 
Chapter XV Standards, Technical Regulati ons and Conformity Assessment Procedures 
Chapter XVI Intellectual Property 
Chapter XVII Transparency 
Chapter XVIII Administration of the Treaty Chapter XIX Dispute Settlement 
Chapter XX Exceptions 
Chapter XXI Final Clauses 
 
Annexes 
 
• Annex 3-04(5):  Tariff Elimination Programme 
Tariff Elimination Annexes 
Industrial Sector - Annexes of El Sa lvador, Guatemala, Honduras, Mexico 
Agricultural Sector - Annexes of El Salvador, Guatemala, Honduras, Mexico 
• Annex 6-03:  Specific Rules of Origin 
• Services and Investment Reservations 
Annexes I-IV Lists of El Salvador, Guatemala, Honduras, Mexico 
 
Side letters 
 
• On the interpretation of the term "Northern Tria ngle" or "Triangle of the North" (applies to 
all Parties); 
• on the treatment of certain originating products excluded from the tariff elimination 
programme (applies to El Salvador and Mexico only); 
• on the possibility of providing for diagonal cumulation of origin in relation to materials 
originating from third parties with which an y of the Parties had concluded similar trade 
agreements (applies to all Parties); 
• on the interpretation of the term "similar circumstances" in Articles 14-04 and 14-05 of 
Chapter XIV (Investment) (applies to all Parties); 
• procedures for the granting of sanitary registration for goods requiring it (Chapter XV 
refers);  and 
• on the commencement of negotiations for a Chapter on government procurement.
 
  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
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  III. TRADE IN GOODS 
A. N
ATIONAL TREATMENT AND MARKET ACCESS PROVISIONS ON TRADE IN GOODS  
1. Import duties and charges, and quantitative restrictions 
(a) General provisions 
28. Article 3-03 provides for the granting of national treatment to goods of the other Party;  it 
incorporates into the Treaty Article III of the GATT 1994 and its interpretative notes.  National 
treatment applies at the state, provincial and muni cipality level.  Measures listed in Annexes 3-03 and 
3-09 are exempted from national treatment obligations.2 
29. Article 3-04 of the Treaty contains the general rules relating to the tariff elimination 
programme (TEP) of the Treaty.  Paragraph 1 prohib its an increase in applied rates of duty, or the 
adoption of any new tariff rates, on originating goods covered by the TEP.3  For products excluded 
from this programme, the import regime is to be in accordance with the WTO provisions and, once a 
year, Parties will examine the possibility of incorpor ating any of them into the TEP (paragraphs 2 and 
3;  see paragraph 35 below for an exception to this  general rule).  Paragr aph 5 and Annex 3-04(5) 
include the country-specific tariff elimination sch edules.  Upon request by any of the Parties, 
consultations will take place on the possible accelera tion of the tariff elimination foreseen;  if these 
succeed, they shall replace any rate or category in itially foreseen (paragraphs 6 and 7).  As at 
March 2009, Guatemala maintained the elimination sch edule originally negotiated with Mexico;  with 
regard to other elimination schedules, the following modifications were made: 
(a) In 2003, Mexico eliminated the import tariff for two tariff items corresponding to 
footwear products from El Salvador.  El Sa lvador accelerated elimination to 5% on its 
imports of those items. 
(b) In 2004, Mexico eliminated the import tariff for 14 tariff items corresponding to 
footwear products from Guatemala.  Mexico also eliminated the import tariff for 
15 tariff items corresponding to iron a nd steel products from El Salvador. 
(c) In 2006, Mexico granted an import quota with a preferential tariff below the one 
established in the TEP for two tariff items corresponding to iron and steel products 
from El Salvador.  It also eliminated the import tariff for fruit nectars from El Salvador. 
(d) El Salvador eliminated the import tariff for aseptic guava and strawberry pulp from 
Mexico. 
(e) In 2006, Mexico eliminated the import ta riff and Honduras applied an elimination 
schedule of three tariff cuts for tari ff items corresponding to the textiles and 
manufacturing sector which were excluded from preferential treatment upon the entry into force of the Treaty. 
                                                     
 
2 Annexes 3-03 and 3-09 list, for each Party, those products for which import/export restrictions are 
allowed.  Products covered are, in the majority used te xtiles and automotive goods and parts.  A complete list of 
the products included therein can be found in Table AII.1 in Annex II of the Factual Presentation. 
3 However, tariffs may be increased up to the level established in the TEP if previously they had been 
reduced unilaterally to a level lower than the one provided for in the programme. WT/REG212/2/Rev.1 
WT/REG213/2/Rev.1 WT/REG214/2/Rev.1 
Page 20 
  
  30. Moreover, in April 2005, the Treaty's Administrative Commission decided, by virtue of its 
Decision No. 10, to incorporate into the TEP the textile products in HS Chapters 50-63 for trade 
between Mexico and Honduras.
4  In this factual presentation, the information relating to the 
liberalization of tariff lines and commercial transactions in respect of trade between Mexico and 
Honduras takes this modification into  account (see paragraph 101 below). 
31. A side letter referring to the treatment to be  provided for certain products excluded from the 
TEP has been signed by El Salvador and Mexico.  According to it, the Treaty's rules regarding 
products excluded from the TEP do not apply for certa in sugar and ethyl alcohol products (namely 
HS 1701, 1702.90, 1703, 1806.10.01, 2106.90.05 and 2207). 
32. Article 3-05 refers to programmes of duty dr awback, duty deferral and waiver of customs 
duties on exported goods;  it provides that Parties main tain their rights to apply those programmes in 
accordance with their national legislation and the WTO provisions.  In cases where 25% of a domestic 
industry considers itself affected by those programmes,  consultations shall take place in order to reach 
a mutually acceptable solution. 
33. Import prohibitions or restrictions on goods from any of the other Parties are generally 
banned under paragraph 1 of Artic le 3-09 of the Treaty, unless othe rwise provided for elsewhere in 
the Treaty.  That paragraph also clarifies that t hose restrictions authorized under Article XI of the 
GATT 1994 are also authorized in trade covered by th e Treaty, and that the Article is incorporated 
into the Treaty. 
34. In paragraphs 2 and 3 of Article 3-09, the Pa rties have made explicit some of the import 
restrictions that are prohibited through the incorporation of Article XI of the GATT 1994 into the Treaty.  Thus, paragraph 2 make clear that import price requirements are prohibited, except in the 
context of price undertakings agreed upon in confor mity with the WTO Agreements on Subsidies and 
Anti-Dumping.
5  Further, paragraph 3 has an illustrative lis t of other prohibited import restrictions, as 
follows:  quantitative restrictions;  minimum import prices or values;  the granting of import licences 
conditional (i) the importer purchasing local production,  (ii) the importer exporting the product, and 
(iii) the imported good including a certain amount of local content. 
35. Products for which import prohibitions or rest rictions are authorized under the Treaty are 
listed in Annexes 3-03 and 3-096;  these are not subject to the provisions of paragraphs 1-4 of 
Article 3-09.  Guatemala and  El Salvador did not apply additiona l import restrictions upon the entry  
into force of the FTA and had not done so by Apr il 2009;  in the case of Mexico and Honduras these 
measures are applied.7,8 
                                                      
4 Decision No. 10, National Treatme nt and Market Access for Goods,  of the Treaty's Administrative 
Commission.  This Decision may be viewed at:  http://www.economia.gob.mx/pics/pages/5200_5206_6_base/ 
No_10_DOC220908.pdf and www.glin.gov/download .action?fulltextId=98426&documentId=176418. 
5 Paragraph 2 refers to "compensatory quotas", defined in Article 9-01 of Chapter IX (Unfair Trade 
Practices in International Trade) as  anti-dumping or countervailing duties in conformity with the relevant 
WTO Agreements. 
6 Ibid., footnote 2. 
7 In the case of Mexico, the applicable restrictions  have been modified several times since the entry 
into force of the Treaty, in  accordance with the reforms to the "Agr eement establishing the classification and 
codification of merchandise the importation and exportation of which are subject to the prior licensing requirement", published in the Official Journal on 18 May, 9 July, and 10 September 2001;  1 March, 26 March, 
29 March, and 3 July 2002;  4 Ma rch, 9 November, and 20 December 20 05;  29 March, 2 October, and  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 21 
  
  36. In cases where a Party adopts or maintains an import prohibition or restriction on goods from 
a non-Party, (a) the Party remains free to do so even if importation takes place from the territory of a 
Party (Article 3-09(4)(a));  and (b) upon request, c onsultations will take place so as to avoid distorting 
effects on price, trade and distribution in other Parties (Article 3-09(5)). 
37. Article 3-13 prohibits the increase or establishment of a customs fee for services rendered and 
provides for their elimination on originating g oods as from the entry into force of the Treaty. 
38. Chapter III also contains provisions relating to temporary imports of goods, imports of 
samples, customs valuation - which is to be de termined in accordance with the Agreement on 
Implementation of Article VII of the GATT 1994 - regi stration of importers, establishment of specific 
customs procedures, transparency;  it also provi des for the establishment of  a Committee on Trade in 
Goods. 
(b) Liberalization of tariff lines and trade
9 
39. Tariff elimination is implemented in accordance  with 12 different categories, with an 
additional two categories deriving from Decision No . 10 on trade in textiles between Mexico and 
Honduras, varying from duty-free at entry into force up to a 12-year transition period for El Salvador, Guatemala and Honduras, and a ten-year transiti on period for Mexico.  In addition to these 
14 categories leading to the elimination of duties, a ll of the Parties have a restricted number of tariff 
lines for which a TEP - providing for the application of preferential tariffs lower than the MFN rates 
but higher than zero - is foreseen.  Box III.1 provid es an outlook of the different categories of the TEP 
and their distribution vis-à-vis  each bilateral relationship created by the Treaty. 
                                                                                                                                                                    
 
26 December 2006;  and 29 March and 6 July 2007.  Current import licence regulations may be consulted at:  
http://www.siicex.gob.mx/port alSiicex/SICETECA/Acuerdos /Permisos/permisosx.htm . 
8 Pursuant to the decision adopted by the Committee on Customs Valuation, Honduras applied 
minimum values to used clothing and other worn article s classified under tariff headings 63.09 and 63.10 until 
1 January 2002 and to retreaded or used tyres classified under tariff heading 40.12, used domestic appliances 
classified under tariff headings 84.18, 84.50, 84.51 and 85.16.60.00 and used vehicles other than railway or 
tramway rolling-stock and parts and accesso ries thereof (Chapter 87) until 1 January 2003.  With regard to the 
import restrictions subsequent to the Treaty, Honduras applied controls and taxes to imports of arms and 
ammunition, vehicles and buses, and all petroleum products;  to the importation and use of products containing 
asbestos and their respective sanitary meas ures;  and to ozone-depleting substances. 
9 Unless otherwise specified, all statistics contained in the tables and charts have been prepared on the 
basis of data provided by the Parties. WT/REG212/2/Rev.1 
WT/REG213/2/Rev.1 WT/REG214/2/Rev.1 
Page 22 
  
   
Box III.1 
Tariff Elimination Programme 
Category  Time-frame for Tariff Elimination  
 A Elimination of tariffs as from entry into force of the Treaty 
 B2 Elimination of tariffs in 1 instalment;  duty-free on 15.3.2003 
 B3 Elimination of tariffs in 3 instalments;  duty-free on 15.3.2003 
 B4 Elimination of tariffs in 4 instalments;  duty-free on 1.1.2004 
 B5 Elimination of tariffs in 5 instalments;  duty-free on 1.1.2005  B6 Elimination of tariffs in 6 instalments;  duty-free on 1.1.2006 
 B7 Elimination of tariffs in 7 instalments;  duty-free on 1.1.2007 
 C8 Elimination of tariffs in 8 instalments;  duty-free on 1.1.2008  C9 Elimination of tariffs in 9 instalments;  duty-free on 1.1.2009 
 C10 Elimination of tariffs in 10 instalments;  duty-free on 1.1.2010 
 C11 Elimination of tariffs in 11 instalments;  duty-free on 1.1.2011  C12 Elimination of tariffs in 12 instalments;  duty-free on 1.1.2012 
Additional categories under Decision No. 1010 
 A* Elimination of tariffs by 1 February 2006. 
 B* Elimination of tariffs in three annual cuts;  duty-free on the first day of the third year in which   the Decision is in effect. 
Source : Annex 3-04(5) of the Treaty and Decisi on No. 10 of the Administrative Commission.  
 
Table III.1:  Tariff lines by elimination category (%) 
Mexico- 
El Salvador Mexico- 
Guatemala Mexico- 
Honduras El Salvador- 
Mexico Guatemala- 
Mexico Honduras- 
Mexico Category 
No. lines % No. lines % No. lines % No . lines % No. lines % No. lines % 
1/ 45 0.4 24 0.2 17 0.2 35 0.6 25 0.4 20 0.3 
A 8,280 73.5 8,248 73.3 7,555 67.1 3,304 55.2 3,272 54.8 3,882 53.7 
B2 69 0.6 69 0.6 69 0.6 36 0.6 28 0.5 34 0.5 
B3 850 7.6 898 8 479 4.3 2 0 5 0.1 4 0.1 
B4 110 1 129 1.2 131 1.2 4 0.1 6 0.1 4 0.1 
B5 410 3.6 256 2.3 307 2.7 792 13.2 795 13.3 376 5.2 
B6 12 0.1 16 0.1 16 0.1 4 0.1 4 0.1 4 0.1 
B7 758 6.7 906 8 759 6.7 416 6.9 436 7.3 182 2.5 
C8 14 0.1 15 0.1 19 0.2 125 2.1 92 1.5 161 2.2 
C9 356 3.2 326 2.9 325 2.9 - - 1 0 1 0 
C10 23 0.2 29 0.3 26 0.2 723 12.1 744 12.5 887 12.3 
C11 n.a. n.a. n.a. n.a. n.a.  n.a. 313 5.2 274 4.6 310 4.3 
C12 n.a. n.a. n.a. n.a. n.a. n.a. 32a 0.5 37 0.6 37 0.5 
A* n.a. n.a. n.a. n.a. 1,202 10.7 n.a. n.a. n.a. n.a. 621 8.6 
B* n.a. n.a. n.a. n.a. - - n. a. n.a. n.a. n.a. 293 4.1 
EXCL 228 2 224 2 249 2.2 203 3.4 231 3.9 408 5.6 
PROH 17 0.1 17 0.1 17 0.1 - - - - - - 
Others 93 0.8 108 1 94 0.8 - - 22 0.4 10 0.1 
Total 11,265 100 11,265 100 11,265 100 5,989 100 5,972 100 7,234 100 
EXCL Tariff line excluded;  MFN rate applies. 
PROH Imports under this tariff line are prohibited. 
1/ Preferential tariff rates (better than MFN but higher than 0). a Includes 1 tariff line that is C12 and 1/. 
n.a. not applicable 
Source : Annex 3-04(5) of the Treaty and Decision No. 10 of the Administrative Commission. 
                                                      
10 The tables and charts in this section have been drawn up on the basis of liberalization entering into 
effect on 1 January each year.  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 23 
  
  40. The general rule provides for the TEP to start from the entry into force of the Treaty;  
however, for certain products from El Salvador , Guatemala and Honduras, the Treaty established a 
different start date for elimination, which is indicat ed in the column headed "Start of Elimination".  
The starting date has no effect on the date for the fi nal elimination of the duty;  thus, the product will 
be duty-free as provided for in the category.
11  In case of an unilateral reduction in Mexico's applied 
rate to the same, or lower, level of the base rate  applied by El Salvador, Guatemala or Honduras, the 
provision for a different starting date does not apply. 
41. The base rate upon which reductions are made are sp ecified in the country's tariff elimination 
annex;  for Guatemala, Honduras and Mexico, the base rate corresponds to the MFN tariff for 1998, 
and for El Salvador the MFN tariff for 1996.  Ta riff reductions are implemented upon the entry into 
force of the Treaty and yearly thereafter on 1 January, in accordance with the product category.12 
42. Tariff elimination under the Treaty is depicted  in Tables III.1A to III.1D.  In the case of 
Mexico, duty-free imports prior to the entry into force of the Treaty accounted for 1.3% of its tariff 
lines and oscillated between 0.4% an d 2.7% in terms of bilateral tr ade with its Northern Triangle 
partners for the period 1998-2000, and betwee n 0.0% and 12.9% for the period 2004-2006.  
Table III.1A1 shows that the depth and speed of liberalization vis-à-vis  the Northern Triangle 
countries have followed similar paths since 2006;  so far the situation has been significantly different 
vis-à-vis  El Salvador and Guatemala on the one hand and Honduras on the other.13  In respect of 
Mexico's bilateral trade with El Salvador and Gu atemala, duty-free treatment at entry into force 
reached around 80% of tariff lines and 60% of trad e.  The corresponding figures for Honduras are 
70.8% and 28.7%.  This difference disappeared in 2006, when goods exempt from duties accounted 
for around 85% of tariff lines.  With respect to the Northern Triangle countries, trade will not be fully 
liberalized at the end of the implementation period for 2.5% of tariff lines and 0.3% of imports from 
El Salvador, 2.5% of tariff lines and 4.6% of im ports from Guatemala, and 2.4% of tariff lines and 
3.1% of imports from Honduras.  Apart from liberalization at entry into force, attention should be 
drawn, in respect of tariff lines, to the liberalization that took place in 2007 vis-à-vis  all Northern 
Triangle partners, and, as regards imports, to the liberalization that took place in 2005 with 
El Salvador (20.4% of trade) and in 2009 with Guatemala and Honduras (14.3% and 36% 
respectively).  Once tariff elimination is measured vis-à-vis  more recent import data – namely 2004-
2006 – the most significant change occurs on trade with Guatemala, with an increase in trade on 
products duty-free on an MFN basis and a decrease of  trade on products which have become duty-free 
at entry into force, from 61.7% in 1998-2000 to 47.2% in 2004-2006. 
                                                      
11 E.g. a product that is in category C11 is due fo r duty-free treatment by 2011;  if the first tariff 
reduction only takes place in year 4 (instead of at en try into force), du ty-free treatment will still take place by 
2011.  The applicable customs tariff will be eliminated as  of the first day of the year indicated, in the same 
number of equal remaining annual cuts. 
12 The Treaty entered into force on 15 March 2001 fo r El Salvador, Guatemala and Mexico;  the first 
cut was implemented for these parties on that date.  In the case of Honduras, although the Treaty entered into 
force in June 2001, cuts began as of 1 January 2002 and continued to take effect every 1 January. 
13 This difference can be explained by the fact th at the liberalization of textile products in trade 
between Mexico and Honduras did not begin until 2006. WT/REG212/2/Rev.1 
WT/REG213/2/Rev.1 WT/REG214/2/Rev.1 
Page 24 
  
  Table III.1A1 - Mexico 
Tariff elimination commitments under the Trea ty and corresponding average trade, 1998-2000 
Number of lines  % of total lines in 
Mexico's tariff schedule  Value of Mexico's imports  
(1998-2000) 
in million US$  % of Mexico's total  
imports  
(1998-2000)  Duty 
phase-out 
period 
El Salv Guat Hond El Salv  Guat Hond El Salv Guat Hond El Salv Guat Hond 
MFN duty 
free (2001) 152 152 152 1.3 1.3 1.3 0.1 2.3 0.0 0.6 2.7 0.4 
2001 9,077 9,095 7,979 80.6 80.7 70.8 12.3 51.9 3.1 59.0 61.7 28.7 
2004 112 131 134 1.0 1.2 1.2 0.2 0.3 0.2 1.0 0.4 1.9 
2005 418 259 312 3.7 2.3 2.8 4.3 2.0 0.2 20.4 2.4 1.8 
2006 12 16 1,218 0.1 0.1 10.8 - 0.0 2.7 - 0.1 24.5 
2007 794 955 799 7.0 8.5 7.1 1.1 5.6 0.3 5.2 6.7 3.0 
2008 36 16 43 0.3 0.1 0.4 2.4 3.2 0.0 11.6 3.9 0.4 
2009 362 327 327 3.2 2.9 2.9 0.4 12.0 3.9 2.1 14.3 36.0 
2010 23 29 26 0.2 0.3 0.2 0. 0 2.7 0.0 0.004 3.2 - 
Remain 
dutiable 279 285 275 2.5 2.5 2.4 0.1 3.9 0.3 0.3 4.6 3.1 
Total 11,265 11,265 11,265 100.0 100.0 100. 0 20.9 84.2 10.9 100.0 100.0 100.0 
 
Note: - no import data ; excludes data beyond HS Chapter 97.  The tariff lines which were already duty free on an MFN basis in  2001 are not counted as lines to be liberalized;  thus, the t otal 
number of tariff lines by year of duty elimination, and  the numb er of lines remaining dutiable, may not be the same as the tot al 
number of tariff lines by elimination  category presented in Table III.1.  
 
Source: WTO Secretariat based on data pr ovided by Mexico and WTO-IDB. 
 
Table III.1A2 – Mexico 
Tariff elimination commitments under the Trea ty and corresponding average trade, 2004-2006 
Number of lines  % of total lines in 
Mexico's tariff schedule  Value of Mexico's 
imports  
(2004-2006) 
in million US$  % of Mexico's total 
imports  
(2004-2006) 
 Duty  
phase-out 
period 
El Salv Guat Hond El Salv Guat Hond El 
Salv Guat Hond El 
Salv Guat Hond 
MFN duty free 
(2001) 152 152 152 1.3 1.3 1.3 0.4 34.3 0.0 0.7 12.9 0.0 
2001 9,077 9,095 7,979 80.6 80.7 70.8 36.9 125.5 25.6 66.9 47.2 27.4 
2004 112 131 134 1.0 1.2 1.2 4.1 9.1 0.9 7.5 3.4 1.0 
2005 418 259 312 3.7 2.3 2.8 9.3 7.4 4.7 16.9 2.8 5.0 
2006 12 16 1,218 0.1 0.1 10.8 0. 0 0.3 17.0 0.1 0.1 18.2 
2007 794 955 799 7.0 8.5 7.1 2.2 17.6 1.1 4.0 6.6 1.2 
2008 36 16 43 0.3 0.1 0.4 0.0 1.6 0.0 0.0 0.6 0.0 
2009 362 327 327 3.2 2.9 2.9 1.6 34.3 43.8 2.9 12.9 46.9 
2010 23 29 26 0.2 0.3 0.2 0.0 9.6 0.0 0.0 3.6 0.0 
Remain dutiable 279 285 275 2.5 2.5 2.4 0.5 26.3 0.2 1.0 9.9 0.2 
Total 11,265 11,265 11,265 100.0 100.0 100. 0 55.2 266.0 93.4 100.0 100.0 100.0 
Note: Excludes data beyond HS Chapter 97. 
 The tariff lines which were already duty free on an MFN basis in  2001 are not counted as lines to be liberalized;  thus, the t otal 
number of tariff lines by year of duty elimination, and  the numb er of lines remaining dutiable, may not be the same as the tot al 
number of tariff lines by elimination  category presented in Table III.1.  
 
Source:  WTO Secretariat based on data pr ovided by Mexico and WTO-IDB.  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 25 
  
  43. With respect to El Salvador, 47% of all tariff lines and 43.4% of bilateral trade with Mexico 
(1998-2000) were already duty free prior to the Treat y's entry into force.  At entry into force, 
duty-free treatment was applied with respect to an additional 9% of tariff lines and 14.9% of trade.  
Attention should be drawn to the liberalization foreseen  for years five and ten of the transition period;  
by 2005, around two thirds of both tariff lines and trade benefited from free trade;  and by 2010, 
90.6% of tariff lines would be duty free and for trade a similar figure would be attained in 2011.  At 
the end of the transition period, duties would still a pply on 3.7% of tariff lines and 8.7% of trade.  
Compared to the earlier years, tariff elimination measured in terms of the trade of 2004-2006 shows a 
decrease of trade on those products that were duty -free on an MFN basis, an increase of trade on 
products which have benefited from duty-free at en try into force, - from 14.9% in 1998-2000 to 
22.5% in 2004-2006, and a decrease in trade of products remaining dutiable. 
Table III.1B - El Salvador 
Tariff elimination commitments under the Treaty and corresponding average trade 
1998-2000 2004-2006 
Duty phase-out 
period Number 
of lines % of total 
lines in El 
Salvador's 
tariff 
schedule Value of  
El Salvador's 
imports from 
Mexico  
(million US$) % of 
El Salvador's 
imports from 
Mexico  Value of  
El Salvador's 
imports from 
Mexico  
(million US$) % of 
El Salvador's 
imports from 
Mexico  
MFN duty free (2001) 2,812 47.0 109.7 43.4 164.5 32.9 
2001 540 9.0 37.7 14.9 112.4 22.5 
2002 21 0.4 8.9 3.5 27.4 5.5 
2003 2 0.0 0.1 0.1 0.1 0.0 
2005 781 13.0 12.3 4.9 23.4 4.7 
2006 4 0.1 0.5 0.2 0.0 0.0 
2007 419 7.0 5.0 2.0 11.1 2.2 
2008 124 2.1 6.4 2.5 21.4 4.3 
2010 720 12.0 36.0 14.2 85.2 17.0 
2011 310 5.2 13.5 5.3 34.2 6.8 
2012 32 0.5 0.9 0.3 1.9 0.4 
Remain dutiable 224 3.7 22.1 8.7 18.8 3.8 
Total 5,989 100.0 253.0 100.0 500.4 100.0 
 
Note: Calculations exclude import data under HS Chapter 98.   The tariff lines which were already duty free on an MFN basis in  2001 are not counted as lines to be liberalized;  thus, the t otal 
number of tariff lines by year of duty elimination, and  the numb er of lines remaining dutiable, may not be the same as the tot al 
number of tariff lines by elimination  category presented in Table III.1.  
 
Source : WTO Secretariat based on data provi ded by El Salvador and WTO-IDB. 
 
44. With respect to Guatemala, 46.7% of all ta riff lines and 45.8% of bilateral trade (period 
1998-2000) were already duty-free prior to the Treaty's en try into force.  At entry into force, duty-free 
treatment was applied with respect to an additional 8. 4% of tariff lines and 9.2% of trade.  Attention 
should be drawn to the liberalization foreseen for years five and ten of the transition period 
(i.e. 2005 and 2010).  By 2005, ar ound two-thirds of both tariff lines and trade were foreseen to 
benefit from duty-free trade;  by 2010, 90.6% of tariff lines would be duty-free;  on trade, a somewhat similar figure would only be attained in 2012.  At  the end of the transition period, duties would still 
apply on 4.2% of tariff lines and 10.9% of bilateral trade with Mexico. WT/REG212/2/Rev.1 
WT/REG213/2/Rev.1 WT/REG214/2/Rev.1 
Page 26 
  
  Table III.1C - Guatemala 
Tariff elimination commitments under the Treaty and corresponding average trade 
Duty phase-out period Number of lines % of total lines in 
Guatemala's tariff 
schedule Value of Guatemala's imports 
from Mexico 
(1998-2000) 
US$ million % of Guatemala's total 
imports from Mexico 
1998-2000 
MFN duty-free (2001) 2,789 46.7 237.7 45.8 
2001 503 8.4 47.6 9.2 
2002 7 0.1 2.3 0.4 
2003 33 0.6 20.8 4.0 
2004 6 0.1 0.0 0.0 
2005 794 13.3 23.5 4.5 
2006 4 0.1 0.7 0.1 
2007 437 7.3 5.7 1.1 
2008 92 1.5 11.4 2.2 
2009 1 0.0 1.8 0.4 
2010 749 12.5 80.6 15.5 
2011 276 4.6 27.9 5.4 
2012 31 0.5 2.2 0.4 
Remain dutiable 250 4.2 56.3 10.9 
Total 5,972 100.0 518.5 100.0 
 
Note: The tariff lines which were already duty free on an MFN ba sis in 2001 are not counted as lines to be liberalized;  thus, the total 
number of tariff lines by year of duty elimination, and  the numb er of lines remaining dutiable, may not be the same as the tot al 
number of tariff lines by elimination  category presented in Table III.1. 
Source : WTO Secretariat based on data pr ovided by Guatemala and WTO-IDB. 
45. With regard to Honduras, no duty-free MFN rates we re applied in 2001.  At entry into force, 
duty-free treatment was applied to 54.5% of all tariff lines and 48.8% of trade (1998-2000).  At year ten of the transition period, 12.1% of tariff lines and 16.8% of trade are to be liberalized;  attention 
should also be drawn to the liberalization foreseen for year six
14 with respect to tariff lines and year 
12 in terms of trade (an additional 8.6% and 6. 7% respectively).  By the mid-term of the 
implementation period, around two-thirds of tariff lin es and around half of trade were liberalized.  At 
the end of the transition period, 94% of the tariff lines and 81.6% of trade would be duty-free.  While 
tariff elimination commitments in terms of tr ade flows in the years 2004-2006 has not changed 
significantly compared to 1998-2000, table III.1D below shows in particular that the share of trade of 
products liberalized at later stages has increased (e.g . for those liberalized in 2010, trade has increased 
from 16.8% to 23.2%) while  the opposite occurs vis-à-vis  trade of products remaining dutiable 
(from 18.4 to 6.4%). 
 
 
 
     
 
                                                     
 
14 Year when textile products integrated into the TEP.  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 27 
  
  Table III.1D - Honduras 
Tariff elimination commitments under the Treaty and corresponding average trade 
1998-2000 2004-2006 
Duty phase-out 
period Number 
of lines % of total 
lines in 
Honduras' 
tariff 
schedule Value of  
Honduras' 
imports from 
Mexico  
(million US$) % of Honduras' 
imports from 
Mexico  Value of  
Honduras' imports 
from Mexico  
(million US$) % of Honduras' 
imports from 
Mexico  
2001 3,941 54.5 70.9 48.8 130.2 53.2 
2002 3 0.0 0.1 0.1 0.1 0.1 
2003 4 0.1 0.4 0.3 0.7 0.3 
2005 372 5.1 4.3 3.0 10.0 4.1 
2006 625 8.6 1.6 1.1 1.8 0.7 
2007 74 1.0 0.7 0.5 0.2 0.1 
2008 558 7.7 5.0 3.4 15.5 6.3 
2010 875 12.1 24.4 16.8 56.8 23.2 
2011 137 1.9 1.5 1.0 3.0 1.2 
2012 209 2.9 9.8 6.7 10.9 4.5 
Remain dutiable 436 6.0 26.7 18.4 15.7 6.4 
Total 7,234 100.0 145.5 100.0 245.0 100.0 
 
Note: Calculations exclude import data under HS Chapter 99.   The tariff lines which were already duty free on an MFN basis in  2001 are not counted as lines to be liberalized;  thus, the t otal 
number of tariff lines by year of duty el imination, and the number of lines remaining dutiable, may not be the same as the tota l 
number of tariff lines by eliminati on category presented in Table III.1.  
 
Source :  WTO Secretariat based on data provided by Honduras. 
(c) Mexico's liberalization schedule 
Mexico-El Salvador  
 
46. Mexico's tariff schedule contains 11,265 tariff lines out of which 11,193 carry ad valorem  
rates;  ten lines have specific duties, 45 compound rates while imports under 17 lines are prohibited.  
The Secretariat's calculations include the ad valorem  rates as well as the ad valorem  parts of the 
compound rates, as ad valorem  equivalents for the specific rates are not available. 
47. Out of the 11,265 tariff lines forming Mexico 's tariff schedule (at the HS 8-digit level), 
152 were already duty-free in 2001;  up-front liberaliza tion is clearly shown in Chart III.1, with more 
than 9,000 tariff lines becoming duty-free at entry into force of the Treaty.  Also, from the beginning liberalization has taken place within all ranges;  on one side of the spectrum, more than 90% of tariff 
lines with an MFN rate up to 10% were liberalized at  entry into force, but at the other extreme, only 
4% of tariff lines with an MFN rate above 50% were  liberalized.  At the end of the transition period, 
the lowest liberalization will occur for those lines having MFN rates higher than 50%, but for 
MFN rates up to 40%, liberalization varies between 96.8% and 100% of the tariff lines (100% of tariff 
lines with an MFN rate between 30% and 40% are to be liberalized as of 2009).  Liberalization generally takes place in all years;  apart from entry into force, the most si gnificant liberalization for 
MFN rates between 30% and 40% was in 2005, 20 07 for rates between 10% and 30%, and 2009 for 
rates up to 10% and above 40% rates for which are lib eralized only at entry into force and in 2009.  
Finally, out of the 27 lines that had a specific MFN duty in 2001, rate for 14 would have been WT/REG212/2/Rev.1 
WT/REG213/2/Rev.1 WT/REG214/2/Rev.1 
Page 28 
  
  eliminated by 2010;  this elimination took place in tw o stages, namely at entry into force (four lines) 
and 2008 (ten lines). 
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,0002001200220032004200520062007200820092010Chart III.1 Mexico-El Salvador
Mexico's dut y elimination under the Treat y Year of duty free treatment   
Source: WTO Secretariat estimates, based on data provided by Mexico.Number of duty-free lines (cumulative)
MFN Duty-free <10% <20% <30% MFN rate is: <40% >50% <50% specific 
duty
 
 
 48. Table III.2 shows Mexico's trade liberalization vis-à-vis  El Salvador under the Treaty 
organized according to HS section.  By the end of the ten-year transition period, all tariff lines of 
HS Sections III, VII-IX, XI-XIV, XVI, XVIII and XX-XXI  are to be liberalized;  with the exception 
of arms and ammunition (Section XIX), which are excluded from the Treaty, the sections with the greatest proportion of tariff lines still subject to duties are HS Sections I and II.  311 agricultural tariff lines were liberalized at entry into force and a further 362 lines are scheduled for liberalization by 
2009 (29.2% and 34% of agricultural tariff lines, r espectively).  Major liberalization of industrial 
products took place at entry into force with the liberalization of 8,762 tariff lines, accounting for 
85.9% of industrial tariff lines;  additional lin es were liberalized in 2004, 2005 and 2007 when 
liberalization of industrial products under the Treaty was completed.  At the end of the transition period, 1.3% of the tariff lines of industrial produc ts will remain dutiable, the equivalent figure for 
agricultural products being 14.4%.  The average final tariff rate for dutiable imports from El Salvador 
varies between 5.7% and 70.8%. 
 
    WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 29 
  
  Table III.2 
Mexico vis-à-vis  El Salvador:  Tariff eliminatio n under the Treaty, by HS section 
Number of duty-free lines 
HS section and 
description MFN 
average
% Total 
No of 
lines MFN 
2001 
2001 
2004 
2005 
2006 
2007 
2008 
2009 
2010 
Remain 
dutiable 
Average Final 
Tariff 
( i )
I Live animals and 
animal products 36.9 277 4 118 24    4 29 9 89 P 70.8 
II Vegetable 
products 17.6 411 25 154 53 11  2 1 131  34 P 40.3 
III Animal or 
vegetable fats and 
oils 21.1 66 1 9 1    13 42    
IV Prepared food 
etc. 23.2 310  30 27 15 12 4 18 160 14 30 38.9 
V Minerals 11.6 191  183    1    7 11.6 
VI Chemicals and 
chemical products 11.0 2,668 63 2,516 7 27  44    11 - 
VII Plastics and 
rubber 16.0 514 2 346  78  88      
VIII Hides and 
skins 17.6 89  37    52      
IX Wood and 
articles 19.6 124  48  1  75      
X Pulp, paper etc. 13.1 294 17 250  15  10    2 - 
XI Textiles and 
textiles articles 23.6 1,203  1,203          
XII Footwear, 
headgear 31.7 97  28  66  3      
XIII Articles of 
stone 18.7 291  219  19  53      
XIV Precious 
stones, etc. 12.4 62 9 53          
XV Base metals 
and base metals products 16.0 1,145 6 883  27  174    55 5.7 
XVI Machinery 14.4 2,448 25 2,202  52  169      
XVII Transport 
equipment 17.3 355  284  36  9    26 24.2 
XVIII Precision 
equipment 15.0 457  400  4  53      
XIX Arms and 
ammunition 20.5 29          29 20.5 
XX Misc. 
manufactured 
articles 23.3 222  98  67  57      
XXI Works of art, 
etc. 3.0 12  12          
Total 16.3 11,265 152 9,073 112 418 12 794 36 362 23 283 38.6 
 
Note: Excludes tariff lines beyond HS Chapter 97. 
P with prohibited tariff lines 
- prohibited tariff lines 
 
Source:  WTO estimates based on data pr ovided by Mexico and WTO-IDB. 
 
Mexico-Guatemala  
 
49. As already indicated, Mexico's liberalization vis-à-vis  Guatemala is very similar to that with 
El Salvador.  Therefore, the general trends describ ed in paragraph 47 above – up-front liberalization, 
liberalization from the beginning of tariff ranges, relatively low liberalization of lines with tariffs 
above 50% - also apply in this case, though the percenta ges differ slightly.  At the end of the transition WT/REG212/2/Rev.1 
WT/REG213/2/Rev.1 WT/REG214/2/Rev.1 
Page 30 
  
  period, the lowest liberalization would concern those lines having MFN rates higher than 50%;  
however, in this case, Mexico is liberalizing 15 ta riff lines compared to ten lines for El Salvador.
15  
Finally, out of the 27 lines that had a specific MFN duty in 2001, rates on four were eliminated at 
entry into force;  after that, no more such elimination is to take place. 
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,0002001200220032004200520062007200820092010Chart III.2 Mexico-Guatemala
Mexico's dut y elimination under the Treat y Year of duty free treatment   
Source: WTO Secretariat estimates, based on data provided by Mexico.Number of duty-free lines (cumulative)
MFN Duty-free <10% <20% <30% MFN rate is: <40% >50% <50% specific duty
 
 
 50. Table III.3 shows Mexico's trade liberalization vis-à-vis  Guatemala under the Treaty 
organized according to HS section.  By the end of the ten-year transition period, all tariff lines of 
HS Sections VII-IX, XI-XIV, XVI, XVIII and XX-XXI ar e to be liberalized;  with the exception of 
arms and ammunition (Section XIX) which are excl uded from the Treaty, the lowest proportion of 
liberalization is found in HS Sections I, IV, V and XVII (by 2010, respectively 32.5%, 13.2%, 9.9% 
and 10.7% of tariff lines in these sections will rema in dutiable).  The bulk of liberalization for 
agricultural products took place at entry into force a nd is foreseen also for 2009, with respectively 323 
and 327 tariff lines expected to become duty-free;  2004 was also significant with 124 lines becoming 
duty-free.  As for industrial products, 86% of tariff lines became duty-free at entry into force;  further 
liberalization took place under the Treaty in 2004,  2005 and especially 2007 (an additional 9.3% of 
lines), when liberalization of industrial products under  the Treaty was completed.  At the end of the 
transition period, 1.2% of the tariff lines on industr ial products will remain dutiable, the equivalent 
figure for agricultural products being 15.4%.  The av erage final tariff rate with respect to dutiable 
imports from Guatemala varies between 3.5% and 70.1%. 
                                                     
 
15 Mexico had in total 50 lines for which the 2001 MFN rate was above 50%.  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 31 
  
  Table III.3 
Mexico - Guatemala: Tariff eliminat ion under the Treaty, by HS section 
Number of duty-free lines  
HS section and 
description  MFN 
average
% Total 
No of 
lines MF
N 
2001 
2001 
2004 
2005 
2006 
2007 
2008 
2009 
2010 
Remain 
dutiable  
Average Final 
Tariff 
(Dutiable ) 
I Live animals and 
animal products 36.9 277 4 119 26     29 9 901/ P 70.1 
II Vegetable 
products 17.6 411 25 162 77 11   1 103  32 P 35.1 
III Animal or 
vegetable fats and 
oils 21.1 66 1 9 1    12 42  1 3.5 
IV Prepared food 
etc. 23.2 310  33 20 15 16 9 3 153 20 411/ 21.4 
V Minerals 11.6 191  169    3    19 10.7 
VI Chemicals and 
chemical products 11.0 2,668 63 2,523 7 27  37    11 - 
VII Plastics and 
rubber 16.0 514 2 346  78  88      
VIII Hides and skins 17.6 89  37    52      
IX Wood and 
articles 19.6 124  24  1  99      
X Pulp, paper etc. 13.1 294 17 257    18    2 - 
XI Textiles and 
textiles articles 23.6 1,203  1,203          
XII Footwear, 
headgear 31.7 97  28    69      
XIII Articles of 
stone 18.7 291  219  19  53      
XIV Precious 
stones, etc. 12.4 62 9 53          
XV Base metals and 
base metals products 16.0 1,145 6 909  20  184    26 5.5 
XVI Machinery 14.4 2,448 25 2,212  29  182      
XVII Transport 
equipment 17.3 355  263  3  51    38 20.1 
XVIII Precision 
equipment 15.0 457  404    53      
XIX Arms and 
ammunition 20.5 29          29 20.5 
XX Misc. 
manufactured 
articles 23.3 222  109  56  57      
XXI Works of art, 
etc. 3.0 12  12          
Total 16.3 11,265 152 9,091 131 259 16 955 16 327 29 289 36.8 
 
Note: Excludes tariff lines beyond HS Chapter 97. 
1/ Combination of ad valorem  and specific duties (for tariff lines with non ad valorem  components, only the ad valorem  part of the 
rate was included in the calculation of the tariff averages). 
P with prohibited tariff lines 
- prohibited tariff lines. 
 
Source:   WTO estimates based on data pr ovided by Mexico and WTO-IDB. 
 
Mexico-Honduras  
 51. While Mexico's liberalization vis-à-vis  Honduras follows the same trend as for the other 
two countries - i.e. up-front liberalization, libera lization from the beginning in all tariff ranges, and 
relatively low liberalization of tariffs higher than 50%  - the depth and coverage of such liberalization 
are different from the other two cases up until 2005.  With the entry into force of the Treaty, all WT/REG212/2/Rev.1 
WT/REG213/2/Rev.1 WT/REG214/2/Rev.1 
Page 32 
  
  products with MFN tariff rates below 10%, and 80.4%  of products with MFN rates between 10% and 
30% were liberalized.  In 2006, 395 tariff lin es with MFN rates between 40% and 50% were 
liberalized;  at the end of the transition period, all 480 lines within this range will be duty-free.  With 
regard to tariff lines with rates exceeding 50%, one line was liberalized upon the entry into force of 
the Treaty and 11 additional lines in 2009;  four lines remain dutiable.  With regard to the 50 lines 
with specific rates, a total of 16 lines are to be  liberalized, seven upon entry into force and nine 
additional lines in 2009. 
 
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,0002001200220032004200520062007200820092010Chart III.3 Mexico-Honduras
Mexico's dut y elimination under the Treat y Year of duty free treatment   
Source: WTO Secretariat estimates, based on data provided by Mexico.Number of duty-free lines (cumulative)
MFN Duty-free <10% <20% <30% MFN rate is: <40% >50% <50%specific 
duty
 
 
 
52. Mexico's trade liberalization vis-à-vis  Honduras according to HS section is pictured in 
Table III.4.  There are a number of differenc es in comparison with this liberalization vis-à-vis  the 
other two countries:  textiles and textiles articles (H S Chapter XI) have been included in the coverage 
only since 2006 (Decision No. 10 of the Administrative Commission)16, while HS Chapter IX (wood 
and articles) is not totally liberalized.  Leaving asi de HS Section XIX, which is excluded from Treaty, 
the lowest proportion of liberalization is found in  HS Sections I, V, IX and XVII (by 2010, 
respectively 29.6%, 9.9%, 16.1% and 9.9% of tariff lines in these sections will remain dutiable).  The 
bulk of liberalization of agricultural products took place at entry into force and further liberalization is 
foreseen for 2009, with respectively 330 and 327 ta riff lines liberalized;  2004 was also significant 
with 127 lines turning duty-free.  As for industria l products, 74.9% of tariff lines became duty-free at 
                                                      
16 The only textiles section tariff line not liberalized under the Treaty is HS 56073001 (twine, cordage, 
ropes and cables of abaca), with the corresponding MFN tariff being 18%.  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 33 
  
  entry into force;  further liberalization took place every year until 2007, when liberalization of 
industrial products under the Treaty was completed, but most notably in 2006 with the liberalization 
of textiles (an additional 10.7% of lines).  At the end of the transition period, 1.4% of the tariff lines 
of industrial products will remain dutiable, the e quivalent figure for agricultural products being 
12.8%.  The average final tariff rate for Honduras'  dutiable imports varies between 74.3% and 5.5%. 
Table III.4 
Mexico vis-à-vis  Honduras:  tariff elimination under the Treaty by HS section 
Number of duty-free lines 
HS section and 
description MFN 
average 
% Total 
No of 
lines MFN 
2001 
2001 
2004 
2005 
2006 2007 
2008 
2009 
2010 
Remain 
dutiable 
Average Final 
Tariff 
(Dutiable) 
I Live animals 
and animal 
products 36.9 277 4 120 26    12 23 10 82P 74.3 
II Vegetable 
products 17.6 411 25 166 77 5    110  28P 35.7 
III Animal or 
vegetable fats 
and oils 21.1 66 1 8 1    13 43    
IV Prepared 
food etc. 23.2 310  36 23 15 16 9 18 151 16 26 23.1 
V Minerals 11.6 191  171    1    19 10.7 
VI Chemicals 
and chemical 
products 11.0 2,668 63 2,525 7 27  35    11 - 
VII Plastics and 
rubber 16.0 514 2 346  78  88      
VIII Hides and 
skins 17.6 89  43    46      
IX Wood and 
articles 19.6 124  53  1  50    20 15.7 
X Pulp, paper 
etc. 13.1 294 17 250  15  10    2 - 
XI Textiles and 
textiles articles 23.6 1,203     1,202     1 18.0 
XII Footwear, 
headgear 31.7 97  28    69      
XIII Articles of 
stone 18.7 291  220  18  53      
XIV Precious 
stones, etc. 12.4 62 9 53          
XV Base 
metals and base 
metals products 16.0 1,145 6 921  8  184    26 5.5 
XVI Machinery 14.4 2,448 25 2,216  31  176      
XVII Transport 
equipment 17.3 355  294  7  19    35 21.0 
XVIII 
Precision 
equipment 15.0 457  404  50  3      
XIX Arms and 
ammunition 20.5 29          29 20.5 
XX Misc. 
manufactured articles 23.3 222  109  57  56      
XXI Works of 
art, etc. 3.0 12  12          
Total 16.3 11,265 152 7,975 134 312 1,218 799 43 327 26 279 36.3 
Note: Excludes tariff lines beyond HS Chapter 97. 
P – with prohibited tariff lines 
- prohibited tariff lines. 
Source: WTO estimates based on data provi ded by Mexico and WTO-IDB. WT/REG212/2/Rev.1 
WT/REG213/2/Rev.1 WT/REG214/2/Rev.1 
Page 34 
  
  (d) El Salvador's liberalization schedule 
53. Out of the 5,989 tariff lines forming El Salvador 's tariff schedule (at the HS 8-digit level), 
100% of which have ad valorem  rates 2,812 lines were already duty-free in 2001.  At the first stage of 
liberalization in 2001, 56% of El Salvador's tariff lines were duty-free (before the Treaty's entry into 
force, 47% of tariff lines were duty-free on an MFN basis).  As indicated in Chart III.4, a tariff-line analysis of El Salvador's liberalization shows that this is to take place in three stages.  In the first stage 
- from 2001 to 2004 - liberalization concerned tariff rates of up to 10% (421 lines);  135 lines between 
10% and 20% were also liberalized , as were seven lines with higher tariffs.  In the second stage - 2005 
and 2006 - a similar number of tariff lines up to 10%, and between 10% and 20%, were liberalized 
(around 700 and 630, respectively), with no additiona l liberalization on higher tariffs.  Stage three - 
2007 to 2012
17 - liberalization will above all affect higher tariffs - 24 lines with tariffs between 30% 
and 40%18, 315 lines with tariffs betwee n 20% and 30%, 671 lines with tariffs between 10% and 20%, 
and 595 lines with tariffs below 10%. 
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000200120022003200420052006200720082009201020112012Chart III.4
El Salvador's duty elimination under the Treaty
Year of duty free treatment   
Source: WTO Secretariat estimates, based on data provided by El Salvador.Number of duty-free lines (cumulative)
Duty-free <10% <20% <30% MFN is: <40%
 
 
 
54. Table III.5 shows El Salvador liberalization vis-à-vis  Mexico by HS section.  As with Mexico, 
the liberalization of agricultural prod ucts is different from that of industrial products;  at the end of the 
transition period, duties will still apply in three of the four HS sections relating to agriculture, while 
that will be the case for only four of the 17 HS sect ions concerning industrial products, one of which 
                                                      
17 No additional liberalization is scheduled for 2009. 
18 The highest applied MFN rate in 2001 was 40%.  Afte r the liberalization of three lines at entry into 
force, the next liberalization for tariffs within that range is foreseen for 2011.  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 35 
  
  is completely excluded from the Treaty (Section XIX).  In 2005, 775 industrial product lines were 
liberalized, and further liberalization of 713 lines is  expected in 2010 (15.3% and 14.1% of industrial 
lines, respectively).
19  Liberalization of industria l products is to be completed by 2011 and that of 
agricultural products by 2012.  At the end of the tr ansition period, 1.5% of the tariff lines of industrial 
products will remain dutiable, the equivalent fi gure for agricultural products being 15.9%.  The 
average final tariff rate applied to dutiable impor ts from Mexico varies between 6.6% and 30.0%. 
Table III.5 
El Salvador:  tariff elimination under the Treaty by HS section 
Number of duty-free lines 
HS section MFN 
avg. 
% Total 
no. of 
lines MFN 
2001 
2001 
2002 
2003 
2004 2005 
2006 
2007 2008 
2009 
2010 Remain 
dutiable Avg. 
final 
tariff 
rate (for 
dutiable 
lines) 
I Live animals 
and animal 
products 14.0 262 34 90   1  32   23 1 81 20.7 
II Vegetable 
products 10.2 362 84 53   4  69  5 111 1 35 16.9 
III Animal or 
vegetable fats 
and oils 7.6 53 18 2        21 12   
IV Prepared 
food etc. 15.7 256 27 19   1  23  2 134 18 32 25.7 
V Minerals 2.9 166 83 55   19    2   7 9.3 
VI Chemicals 
and chemical 
products 1.9 887 701 46 21  32  4 23 54 6    
VII Plastics 
and rubber 4.6 308 134 13  1 21 4   135     
VIII Hides and 
skins 9.1 81 19 14   6    42     
IX Wood and 
articles 7.4 87 25 13   11    38     
X Pulp, paper 
etc. 4.4 191 114    7   62 8     
XI Textiles and 
textiles articles 17.7 891 105 6   489  291       
XII Footwear, 
headgear 14.9 63 2 23   1   33 4     
XIII Articles of 
stone 6.5 160 71 12   16    61     
XIV Precious 
stones, etc. 8.2 53 14 39            
XV Base 
metals and 
base metals products 3.3 675 434 25  1 60   1 125   29 6.6 
XVI 
Machinery 2.3 903 711 34   58   5 80 15    
Table III.5 (Cont'd)  
                                                      
19 Liberalization at entry into force represented ar ound half of that carri ed out in these years. WT/REG212/2/Rev.1 
WT/REG213/2/Rev.1 WT/REG214/2/Rev.1 
Page 36 
  
  Number of duty-free lines 
HS section MFN 
avg. 
% Total 
no. of 
lines MFN 
2001 
2001 
2002 
2003 
2004 2005 
2006 
2007 2008 
2009 
2010 Remain 
dutiable Avg. 
final 
tariff 
rate (for 
dutiable 
lines) 
XVII Transport 
equip. 6.2 168 63 46   7    29   23 23.0 
XVIII 
Precision 
equip. 4.3 244 151 28   19    46     
XIX Arms and 
ammunition 30.0 17            17 30.0 
XX Misc. 
manufactured 
articles 10.9 153 22 22   29    80     
XXI Works of 
art, etc. 20.0 9         9     
Total 7.4 5,989 2,812 540 21 2 781 4 419 124 720 310 32 224 19.6 
Source :  WTO estimates based on data  provided by El Salvador. 
(e) Guatemala's liberalization schedule 
55. Out of the 5,972 tariff lines forming Guatemala's tariff schedule (at the HS 8-digit level), 
100% of which carry ad valorem  rates 2,789 lines were already duty-free in 2001 prior to the entry 
into force of the Treaty.  With the first stage of liberalization in 2001, more than half (55.1%) of 
Guatemala's tariff lines became duty-free before the Treaty's entry into force, 46.7% of tariff lines 
were duty-free on an MFN basis).  Under the Treaty, Guatemala will not eliminate tariffs on certain 
products with an MFN rate above 30%.20  From Chart III.5 it can be seen that liberalization is mainly 
concentrated in the middle and final years of the trans ition period, in particular, in years five and ten.  
Liberalization of MFN tariffs up to 20% have ta ken place as from entry into force, while those 
between 20% and 30% have taken place as of year five of the transition period.  If the transition 
period is grouped in terms of four-year periods  (2001-2004, 2005-2008, 2009-2012), it can be seen 
that liberalization of those tariffs up to 10% has increased steadily, while for those between 10% and 
20% liberalization was greater in the latter stag es (in the period 2009-2012, 551 lines are to be 
liberalized while the relevant figure for 2001-2004 was 160);  and finally for those between 20% and 30% liberalization has mainly taken place in 2005- 2008 (no line liberalized  in the period 2001-2004 
and only 24 lines in 2009-2012). 
 
                                                     
 
20 Only 20 lines have an MFN rate between 30% and 40%.  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
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  0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000200120022003200420052006200720082009201020112012Chart III.5
Guatemala's duty elimination under the Treaty
Year of duty free treatment   
Source: WTO Secretariat estimates, based on data provided by Guatemala.Number of duty-free lines (cumulative)
Duty-free <10% <20% <30% MFN is:
 
 
 56. Table III.6 shows that for Guatemala also, lib eralization of agricultural products will be 
different from liberalization of in dustrial products;  at the end of the transition period, duties would 
still apply in three of the four HS sections relating to agriculture, while that would be the case for only 
five HS sections concerning industr ial products - of which one secti on is completely excluded from 
the Treaty (Section XIX).  For agricultural products , 28.5% of tariff lines in HS Section I (live 
animals and animal products) conti nue to be dutiable, while in the case of industrial products, HS 
Section XVII (transport equipment) will remain dut iable for 29.2% of its tariff lines.  The most 
extensive liberalization of agricultural and industria l products are expected to take, or have taken, 
place in 2011 and 2005, respectively (27.1% of ag ricultural lines and 16% of industrial lines).
21  
Liberalization of industrial products is to be completed by 2011 and that of agricultural products by 
2012.  At the end of the transition period, 2.2% of the tariff lines of industrial products will remain 
dutiable, the equivalent figure for agricultural prod ucts being 15.1%.  An average final tariff rate 
between 4.5% and 20.0% is  applied to these products. 
 
   
 
                                                     
 
21 Liberalization at entry into force represented ar ound half of that carri ed out in these years. WT/REG212/2/Rev.1 
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  Table III.6 
Guatemala:  tariff elimination under the Treaty by HS section 
Number of duty-free lines 
HS section MFN 
avg. 
% Total 
no. of 
lines MFN 
2001 
2001 
2002 2003 
2004 
2005 
2006 
2007 
2008 
2009 
2010 2011 2012 Remain 
dutiable Avg. 
final 
tariff 
rate (for 
dutiable 
lines) 
I Live animals & 
animal 
products 11.6 260 34 92   4 1  31    23 1 74 17.3 
II Vegetable 
products 10.2 363 83 57 1   8  93   3 82  36 17.0 
III Animal or 
vegetable fats 
& oils 7.2 52 19 1          20 12   
IV Prepared 
food etc. 12.5 251 23 22 6 2  1  17  1 5 126 18 30 16.9 
V Minerals 3.9 170 92 36    19     4   19 9.2 
VI Chemicals 
& chemical 
products 2.0 878 689 43  28 2 36  4 23  43 10    
VII Plastics 
& rubber 4.5 301 132 11  1  22 4    131     
VIII Hides & 
skins 9.1 81 19 13    6     43     
IX Wood & 
articles 7.9 87 25 6         56     
X Pulp, paper 
etc. 4.7 195 109   1  10   66  8   1 4.5 
XI Textiles & 
textiles 
articles 19.7 883 108 2    481  292        
XII Footwear, 
headgear 17.9 62 2 23    1     36     
XIII Articles 
of stone 6.4 157 71 12    16     58     
XIV Precious 
stones, etc. 7.6 53 18 35              
XV Base 
metals & base 
metals 
products 3.3 671 438 23  1  65   1  124   19 7.6 
XVI 
Machinery 2.6 901 694 38    68   2  84 15    
XVII 
Transport 
equipment 7.8 185 63 29    3     36   54 13.3 
XVIII 
Precision 
equipment 4.2 244 150 29    20     45     
XIX Arms & 
ammunition 20.0 17              17 20.0 
XX Misc. 
manufactured 
articles 10.9 152 20 24    37     71     
Table III.6 (Cont'd)   WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 39 
  
  Number of duty-free lines 
HS section MFN 
avg. 
% Total 
no. of 
lines MFN 
2001 
2001 
2002 2003 
2004 
2005 
2006 
2007 
2008 
2009 
2010 2011 2012 Remain 
dutiable Avg. 
final 
tariff 
rate (for 
dutiable 
lines) 
XXI Works 
of art, etc. 11.1 9  7         2     
Total 7.6 5,972 2,789 503 7 33 6 794 4 437 92 1 749 276 31 250 15.1 
Source : WTO estimates based on data provi ded by Guatemala and WTO-IDB. 
(f) Honduras' liberalization schedule 
57. Prior to the entry into force of Treaty, 71.6% of Honduras' tariff schedule - composed of 
7,234 tariff lines (at the HS 8-digit level) - had a tariff below 10%, while 27.6% of lines had a tariff 
between 10% and 20%;  only 59 lines carried higher rates (of which one line above 50%).22  In the 
absence of existing MFN duty-free treatment, Hondur as liberalization is clearly front-loaded, as 
indicated in Chart III.6;  at entry into for ce, 54.5% of tariff lines became duty-free and this 
liberalization mainly concerned products that had an  MFN tariff up to 10%.  Liberalization of tariffs 
within this range will continue th roughout the transition period.  Li beralization of tariffs between 10% 
and 20% has taken place since entry into force and is  accentuated in 2006.  Only three tariff lines (out 
of 14) between 20% and 30% are to be liberalized at  entry into force, in 2006 and in 2011;  the Treaty 
does not envisage the liberalization of tariffs above those levels. 
 
                                                      
22 All of Honduras' tariff carries rates that are ad valorem . WT/REG212/2/Rev.1 
WT/REG213/2/Rev.1 WT/REG214/2/Rev.1 
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  0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000200120022003200420052006200720082009201020112012Chart III.6
Honduras' duty elimination under the Treaty
Year of duty free treatment   
Source: WTO Secretariat estimates, based on data provided by Honduras.Number of duty-free lines (cumulative)
<10% <20% <30% MFN is:
 
 
 58. As indicated in Table III.7, at the end of the transition period, duties would still apply in three 
of the four HS sections relating to agriculture, while that would be the case for six HS sections 
concerning industrial products - one of which is co mpletely excluded from the Treaty (Section XIX).  
With regard to agricultural products, 26.8% of tari ff lines in HS Section I (live animals and animal 
products) will remain dutiable;  as far as industrial products in Sect ion XVII (transport equipment) are 
concerned, duties will be applied to 33.2% of tariff lines.  Upon entry into force, 34.6% and 57.9% of 
agricultural and industrial product lines, respect ively, became duty-free.  Liberalizations of 
agricultural products in 2012 and industrial produc ts in 2010 are expected to cover 17.9% of 
agricultural lines and 12% of industrial lines, respec tively.  Liberalization of both agricultural and 
industrial products is to be comple ted by 2012.  At the end of the tr ansition period, 4.4% of industrial 
product tariff lines and 15.1% of agricultural produc t lines will remain dutiable.  The average final 
tariff rate applied to dutiable imports fro m Mexico varies between 1.0% and 21.1%.  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 41 
  
  Table III.7 
Honduras:  tariff elimination und er the Treaty by HS section 
MFN Rate in 2001 
HS section MFN 
avg. 
% Total 
no. of 
lines 
2001 
2002 
2003 
2005 
2006 2007 
2008 
2010 
2011 
2012 Remain 
dutiable Avg. 
final 
tariff 
rate (for 
dutiable 
lines) 
I Live animals and animal products 12.4 317 155   10  24 15 6 10 12 85 19.0 
II Vegetable 
products 10.4 420 159   7  40 77 2 38 60 37 18.1 
III Animal or 
vegetable fats and oils 7.7 56 12        21 23   
IV Prepared food 
etc. 12.3 281 46  2 1  6 15 6 68 97 40 12.5 
V Minerals 4.8 189 135   21    2   31 12.9 
VI Chemicals 
and chemical products 2.7 1074 947 3  39  4 23 58     
VII Plastics and 
rubber 5.1 338 171  1 21 4  2 139     
VIII Hides and 
skins 8.4 119 57   6    56     
IX Wood and 
articles 9.0 170 80   12    62   16 1.0 
X Pulp, paper 
etc. 5.7 313 161   14   130 8     
XI Textiles and 
textiles articles 14.6 1034 21    621  293    99 14.3 
XII Footwear, 
headgear 14.5 77 29   1    47     
XIII Articles of 
stone 7.1 199 110   16    73     
XIV Precious 
stones, etc. 8.3 54 54            
XV Base metals 
and base metals products 3.7 735 517  1 72   1 125   19 8.0 
XVI Machinery 3.7 1114 887   86   2 122  17   
XVII Transport 
equipment 10.8 259 138   3    32   86 21.1 
XVIII Precision 
equipment 4.8 272 203   23    46     
XIX Arms and 
ammunition 16.3 23        90   23 16.3 
XX Misc. 
manufactured 
articles 11.4 181 51   40    1     
XXI Works of 
art, etc. 15.0 9 8            
Total 7.4 7,234 3,941 3 4 372 625 74 558 875 137 209 436 16.0 
Source:  WTO estimates based on data provi ded by Honduras and WTO-IDB. WT/REG212/2/Rev.1 
WT/REG213/2/Rev.1 WT/REG214/2/Rev.1 
Page 42 
  
  2. Rules of origin 
59. Chapter VI deals with the rules of origin, while Chapter VII de als with customs procedures.  
Since the Treaty's entry into for ce, few changes have taken place as regards rules of origin;  these are 
referred to in the paragraphs below.  Definitions of the terms used and references to instruments of 
application and interpretation are containe d in Articles 6-01 and 6-02, respectively. 
60. On 1 June 2006, Decision No. 12 of the Treaty's Administrative Commission entered into 
force modifying annexes 6-03 (Specific Rules of Origin), 6-20 (Mandate of the Committee on 
Regional Integration of Inputs) and 6-26 (Rules of Orig in applied to Levels of Temporary Flexibility);  
these reflect changes made to the HS nomenclatu re since the entry into force of the Treaty.
23 
61. Originating goods are defined in Article 6-03, as follows: 
(a) Goods totally obtained or produced in one or various Parties; 
(b) goods produced in one or various Parties ex clusively from originating materials; 
(c) if non-originating materials are used in the production of the good, product-specific 
rules of origin are provide for in Annex 6-03.  Requirements take the form, in the 
majority of the cases, of a change in tariff classification (CTC);  a stand-alone regional value-content (RVC) requirement app lies in a few cases but it is more widely 
used in combination with a CTC.  These requirements are supplemented by the other 
general provisions of the Chapter. 
62. Article 6-16 provides an exhaustive list of n on-qualifying operations and clarifies that its 
provisions prevail upon any of the specific rules of origin in annex 6-03. 
63. Other provisions include those relating to fungible goods and materials (Article 6-09);  sets or 
assortment of goods (Article 6-10);  indirect materials (Article 6-11);  accessories, spare parts and tools (Article 6-12);  packaging materials and containers (Articles 6-13 and 6-14).  Further, 
Article 6-15 provides a detailed description of au tomotive products and clarifies how the RVC of 
these products are to be calculated.  Duty-d rawback is dealt with in Article 3-05. 
64. Article 6-17 clarifies that no outward processing is authorized;  outside the territory of the 
Parties, only those operations needed for transh ipment or for keeping the goods in appropriate 
conditions are authorized and the good must be kept  under the control and surveillance of the customs 
authorities. 
65. The CTC rule generally requires a change of h eading.  It applies across the board, alone or 
combined with the RVC, specially for industrial goods
24 (on agricultural goods, RVC is only used in 
Chapter 16 of the Harmonized System).  For all goods in parts/assem bled, except those in 
HS Chapters 61-63 or unless specified otherwise in Annex 6-03, CTC requirements are made less 
stringent, provided the good's RVC is not l ess than 50% (paragraph 1 (f) of Article 6-03). 
                                                      
23 Decision No. 12 of the Treaty's Admini strative Commission, which can be found in 
http://www.sice.oas.org/TPD/Mex_No rte/Implementation/Dec12_s.doc. 
24 CTC and RVC are jointly used in certain headings of HS Chapters 28-29, 32-36, 38-40, 48, 64, 66, 
73-74, 78-79, 82-85, 87, 90-91 and 94-96.  RVC requirements apply alone for certain goods of HS Chapters 33, 
39, 48, 78, 85, 87 and 90.  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
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  66. Article 6-04 states that the RVC is calculated as the difference between the value of the good 
and that of the non-originating materials, both va lued on the basis of the transaction value method.
25  
A producer may average (on the basis of its exercise or fiscal period, or any time-related period) the 
RVC of a good under the same tariff classification (paragraph 7 of Article 6-04);  for automotive 
products, as defined in Article 6-15, a different rule  applies and specifies that, in calculating the RVC 
of a motor vehicle, the average can only be taken fo r an exercise or fiscal period;  it also specifies 
those types of goods that ma y be used in the average. 
67. Bilateral cumulation applies among all four count ries;  it is, however, nullified in cases where 
Mexico's speed of tariff elimination by of a given good differs among the Northern Triangle 
countries.26  The absorption principle applies, excep t in cases specified in paragraph 4 of 
Article 6-05 - namely where the producer of the final good uses in its production an originating 
material of another producer that contains non-or iginating materials, or where the producer uses an 
"intermediate material". 
68. While the Treaty does not provide for diagonal cumulation, a side letter provides that the 
Parties will consult with Costa Rica, Nicaragua, Chile  and other third parties with which similar trade 
agreements are in force in order to study the possibility of providing for diagonal cumulation of 
materials and processes.  Since August 2008, cumulati on of origin provisions have been applied for 
the textiles sector (plain weave dresses under HS Chapter 62) with the Northern Triangle countries 
and the US27 under the Central America-United States-Dominican Republic Free Trade Agreement 
(CAFTA-DR).  The Parties also agreed to begin negotiations on the convergence of the Free Trade 
Treatys between Mexico and the other Central Amer ican countries;  in June 1999, the Parties were 
studying the best way to move forward in this regard. 
69. Article 6-07 states that a producer may designate as "intermediate material" those materials it 
produces that comply with the rules of origin requ irements;  in this case, the absorption principle 
applies and the totality of the material will count as originating when incorporated in the production 
of a good.  Paragraph 4 of that Article clarifies th at only one locally produced material subject to a 
RVC requirement may be designate d as intermediate material. 
70. A de minimis  rule (Article 6-06) applies as follows: 
(a) The CTC requirement is waived if the valu e of all non-originating materials that do 
not comply with the required CTC is less th an 7% of the transaction value, adjusted 
as appropriate;  in these cases, the good w ill be considered originating.  Any 
additional RVC requirement w ill apply without any change; 
                                                      
25 The value of the good and of the non-originating materials is generally adjusted to an f.o.b. basis.  
"Transaction value" in accordance with the WTO Agreement on Implementation of Article VII of the 
GATT 1994;  in cases where the transaction value cannot be used - described in paragraphs 5 and 6 of Article 6-04 of the Treaty - the cascad e provisions of the WTO Agreement app lies, as stipulated in paragraph 4 
of that same Article. 
26 E.g. if tariff elimination for a product occurs at  different stages in El Salvador, Guatemala, once 
Mexico imports this good from El Salvador, materials obtained or operations done in Guatemala and Honduras 
will be considered non-originating. 
27 These provisions are applied under a protocol signed in April 2007, which adds Article 3-20 and its 
Annex 3-20 to the FTA.  The protocol may be viewed at:  http://www.csj.gob.sv/Convenios.nsf/ 
ef438004d40bd5dd862564520073ab15/6dd6579c4d697018062573fd0073b92f?OpenDocument. WT/REG212/2/Rev.1 
WT/REG213/2/Rev.1 WT/REG214/2/Rev.1 
Page 44 
  
  (b) the RVC requirement is waived if the valu e of all non-originating materials is less 
than 7% of the transaction value;  in these cases, the good will be considered 
originating; 
(c) the waiving of the CTC requirement does not apply to goods under 
HS Chapters 50-63;  however, if the good is non-originating because the fibre and the 
yarns used do not comply with the CT C requirements, the good will nonetheless be 
considered originating if their total wei ght does not represent more than 7% of the 
material's total weight. 
71. The Committee on Regional Integration of Inputs (CRII) is established under Article 6-19, to 
evaluate the difficulty faced by pr oducers to access certain materials
28 needed for the production of 
final goods under appropriate cond itions (in terms of opportunity, volume, quality and price).  The 
CRII is established for a period of ten years, subjec t to extension upon agreement by the Parties.  
Articles 6-20 to 6-25 state how the investigating ro le of the CRII is to be implemented following a 
Party's request, and the required fo llow-up with the Treaty's Commission. 
Box III.1:  Rules of Origin at a Glance 
Basic Characteristics of the Rules of Origin 
• Product-specific criteria: 
- Wholly obtained goods. 
- CTC, generally at change of heading. - RVC at 50%, generally applied in conjunction with the CTC. 
- Technical test applied only in textiles products. 
• Bilateral cumulation applies with exceptions.  Diagonal cumulation with Chapter 62 textiles 
from the United States. 
• Absorption principle applies with exceptions 
• Tolerance rule applies 
• Duty-drawback applies 
• No outward-processing authorized 
 
3. Export duties and charges, and quantitative restrictions 
72. Article 3-09 prohibits any type of export prohibi tions or restrictions, except those authorized 
elsewhere in the Treaty or under Article XI of  the GATT 1994.  Under paragraphs 2 and 3 of 
Article 3-09, the Parties agree on an interpretati on of Article XI according to which export price 
requirements are forbidden, as well as inter alia  minimum export prices or values and voluntary 
export restraints, unless congruent with the WTO Ag reement on Implementation of Article VI of the 
GATT 1994.  In cases where a Party maintain s an export prohibition or restriction vis-à-vis  a third 
Party, it remains free to subject exports of that good to another Party on condition that these are not 
re-exported to the third Party concerned without  consumption in the Party (paragraph 4(b)). 
73. Products for which export prohibitions or rest rictions are authorized under the Treaty are 
those listed in Annex 3-09;  these are not subject  to the provisions of paragraphs 1 to 4 of 
                                                      
28 These are HS 3904.21-3904.22, 39.20, 48.10, 48.11, 4819.10-4819.60, 48.21, 4823.11-4823.40, 
4823.70-4823.90, Chapters 51-63 and 72-73.  They are listed in Annex 6-20, which may be modified at any time 
upon agreement by the Parties.  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
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 Page 45 
  
  Article 3-09.  These are, for Guatemala, export measures on certain timber products and coffee and 
for Honduras, export prohibitions or restrictions controls on goods made of wood from broadleaved 
forest;  El Salvador and Mexico have not reser ved the right to apply any export restrictions.
29 
74. Article 3-14 prohibits taxes, duties and charges on exports of a good destined for consumption 
in a Party.  In certain cases, such pr ohibition is however suspended, as follows: 
(a) If the taxes, duties or charges also apply on domestic consumption (paragraph 1); 
(b) on a temporary basis30, so to relieve a critical shortage  of foodstuffs (paragraph 2(a));  
or 
(c) also on a temporary basis, to ensure th at a domestic transformation industry is 
supplied with enough raw material in tim es when, in the context of a government 
stabilization programme, its domestic price is  maintained at lower levels than world 
prices (paragraph 2(b));  certain additional requirements also apply in this case;  and 
(d) as regards exports of bananas by Honduras;   however, the export charge will be 
progressively reduced to US$0.04 per box (paragraph 1 and Annex 3-14). 
 Finally, consultations may be organized to ensure that domestic food-aid programmes in 
accordance with this Article have no undesired effects on trade (paragraph 3).  
4. Regulatory provisions on trade in goods 
(a) Standards 
(i) Sanitary and phytosanitary measures 
75. Chapter V includes disciplines on sanitary and ph ytosanitary (SPS) measures that may affect, 
directly or indirectly, trade in goods between the Pa rties.  The rights and obligations of the Chapter 
are based on those of the WTO Agreement on SPS Measures. 
76. Article 5-03(8) and Annex 5-03 contain th e general procedures for the adoption and 
application of SPS measures;  they aim at expe diting their application and facilitating trade.  
Article 5-04(5) provides for the Parties to devel op criteria and procedures for the harmonization of 
sampling, diagnosis, inspection and certification met hods.  As in the WTO, equivalence is provided 
for (Article 5-05);  the Treaty specifies that th e demonstration of equivalence is objectively 
demonstrated through scientific information and risk assessment methods based on international 
standards.  In cases where a risk assessment done to determine the appropriate level of SPS protection 
(Article 5-06) results in the adoption of a provisi onal measure, the exporter is to provide additional 
information to complete the evaluation;  following that, the Parties are to agree on a time-frame for 
the modification of the provisional measure.
31  The Treaty also states that  whenever a Party may reach 
its adequate level of protection through a phased application of a SPS measure, it (Article 5-06(7)), 
                                                      
29 Guatemala, Mexico and El Salvador have not app lied export restrictions under this Article.  In 
Honduras' case, the export restrictions  applied from the entry into force of the Agreement until June 2009 were 
controls on the exportation of wood from broadleaved forests, in accordance with Decree No. 323-98 of 
29 December 1998 establishing the National Reforestation and Environment Programme. 
30 Normally one year;  a longer period may be provided for upon agreement by the Parties. 
31 The WTO Agreement does not provide fo r an agreement between the Parties vis-à-vis  the time-frame 
but simply refers to "within a reasonable period of time". WT/REG212/2/Rev.1 
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  may, upon request of the other Party, allow fo r its phased application or provide for specific 
temporary exceptions to the measure.
32 
77. The Treaty states that in establishing its appropriate  level of protection, a Party shall take into 
account the objective of minimizing negative eff ects on trade and avoid making arbitrary or 
unjustified distinctions that may lead to discriminat ion or constitute a disguised restriction to trade 
between the Parties (Article 5-06(4)).33 
78. The Treaty's transparency provisions (Article 5-09) provide that (a) for SPS measures that 
have been adopted or modified, the requirements  under Annex B of the WTO SPS Agreement apply;  
and (b) specific time-frames are set with relation to numerous notification requi rements relating to the 
proposed adoption and modification of SPS measures;  and (c) transparency will be implemented through the enquire points established under the WTO SPS Agreement.  The Treaty provides for the 
establishment of a Committee on Sanitary and Phyto sanitary Measures, which may in turn establish 
technical groups and sub-groups. 
(ii) Technical barriers to trade 
79. Chapter XV of the Treaty deals with standa rds, technical regula tions and conformity 
assessment procedures.  Article 15-03 confirms that the rights and obligations of the WTO Agreement on Technical Barriers to Trade (TBT) apply between the Parties;  it also clarifies that Parties are to 
adopt the measures necessary for ensuring that oblig ations are complied with at all levels of 
government (central, regional and local), and are to take reasonable measures available to them to 
ensure the same from non-governmental standardiza tion bodies within their territories.  Detailed 
disciplines with respect to notification, publication a nd delivery of information;  information centres;  
technical consultations and technical coope ration are also included in the Chapter. 
80. Standards that provide a higher level of protec tion than international standards are permitted 
provided they address legitimate objectives and are needed, for fundamental climatic, geographical, 
technological or infrastructural factors, or for scientifically proven reasons.  Stronger disciplines than 
in the WTO Agreement apply vis-à-vis  compatibility and equivalence of technical regulations and 
standards and compatibility of conformity assessment  (Articles 15-08 and 15-09, respectively);  the 
Parties are to "favourably consider" a request for the negotiation of mutual recognition agreements.  
As at June 2009, there were no mutual recogn ition agreements between Mexico and any of the 
Northern Triangle countries. 
81. Special and differential treatment may be gran ted to El Salvador, Guatemala and Honduras, 
upon their request;  that would take the form  of recommendations from the Committee on 
Standardization Measures to the Commission fo r specific and temporary measures regarding 
standardization and approval procedures, taking in to account the special and differential provisions 
embodied in Article 12 of the WT O TBT Agreement (Article 15-05). 
                                                     
 
32 Similar provisions are contained in Article 10 - "Special and Differential Treatment" - of the 
WTO SPS Agreement. 
33 The WTO SPS Agreement establishes that "Members shall ensure that such measures are not more 
trade-restrictive than required to achi eve their appropriate level of sanitary or phytosanitary protection, taking 
into account technical and economic feas ibility", and defines that "a measure is not more trade-restrictive than 
required unless there is another measure, reasonably available taki ng into account technical and economic 
feasibility, that achieves the appropriate level of sanitary  or phytosanitary protection and is significantly less 
restrictive to trade."  (Article 5.6 of the WTO SPS Agreement and its footnote 3).  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
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  82. Article 15-10 deals specifically with approval procedures.  It provides inter alia  for national 
treatment with respect to approval procedures, and also specifies that, with respect to requirements 
specific to imported goods or services, national treatme nt may not apply;  in such cases, however, the 
general WTO principle (as contained in Article  15-05(3)) that these shall not create unnecessary 
obstacles to trade nor be more trade-restrictive than  necessary is to be respected.  If a Party considers 
that these principles are not respected, it may bring the case to the Sub-Committee on Approval 
Procedures, in order to reach a mutually accepta ble solution within time-frames specified in the 
Treaty.  In its final paragraph, Article 15-10 provi des that the Parties will grant sanitary registration 
for the products requiring it in accordance with their le gislation;  in addition, the Parties have agreed 
in a side letter that the procedures for granting sanita ry registration will not be made more restrictive, 
and Mexico has committed itself to reform, within two years from the Treaty's entry into force, its 
system to help other Parties to obtain such regi stration through the granting of national treatment.  
Mexico has been unable to comply with the time-frame  specified in the side letters (see paragraph 181 
below). 
83. Apart from the bodies mentioned above, this Ch apter also establishes two Sub-Committees on 
labelling, bottling and packaging and on te lecommunication standardization measures. 
(b) Safeguard mechanisms 
84. The starting point of the safeguards disciplines of  Chapter VIII of the Treaty is that unless 
otherwise provided therein, the rules will be applie d in accordance with domestic legislation and the 
WTO disciplines of Article XIX of GATT 1994 a nd the Agreement on Safeguards.  Detailed 
disciplines, common to both bilateral and global safe guards, apply with respect to the procedures for 
investigation, adoption and application of such meas ures (Article 8-05).  As at June 2009, none of the 
Parties have applied safeguard measures. 
(i) Bilateral safeguards 
85. Under Article 8-03 bilateral safeguards may be  imposed on goods covered by the TEP for the 
three years following the completion of the TEP, if  the import volume increases at a pace and in 
conditions that cause or threaten to cause serious injury to the domestic industry
34, and the measures 
are strictly necessary to counter the situation.  Table III.8 summarizes the requirements and conditions 
for the imposition of bilateral safeguards.  In additi on, Article 8-03(2) states that the Party initiating a 
procedure for a bilateral safeguard is to inform in writing, and request consultations with the affected 
Party, in accordance with Article 8-05(4)-(7).  When  the safeguard measure c oncerns an agricultural 
perishable or seasonal good, the time-frames associated  with the investigation are reduced by half 
unless otherwise agreed by the Parties (Article 8-03). 
(ii) Global safeguards 
86. Article 8-04 clarifies that WTO disciplines on saf eguards apply for the application of global 
safeguards;  however, as for compensation, reta liation and exclusion from a global safeguard, the 
provisions of the Article prevails in case of  incompatibility with the WTO disciplines. 
87. Paragraph 2 of that Article makes clear that  a Party may only apply a global safeguard to 
imports from the other Party once it determines that goods originating therefrom, considered individually, represent a substantial part of total imports and contri bution to the serious injury or 
                                                     
 
34 After this three-year deadline, bilateral safegua rds may only be imposed upon the agreement of the 
affected Party. WT/REG212/2/Rev.1 
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Page 48 
  
  threat thereof.  Paragraph 3 goes further in providing an illustrative list of criteria to be used for such a 
determination.  In addition , paragraph 9 transposes the de minimis  special and differential clause of 
the WTO Safeguards Agreement into the Treaty, by  excluding from the safeguard measures the other 
Party's imports if (i) such imports account for no more than 3% of total imports of the product 
concerned, and (ii) imports from developing countr y Members of the WTO below this threshold, on 
an individual basis, do not collectively account for mo re than 9% of total imports.  In turn, under 
paragraph 4 a Party's decision to exclude from the application of a safeguard measure a good from the 
other Party may be reversed whenever it is determ ined that a sudden increase in imports reduces the 
efficiency of the global safeguard measure. 
Table III. 8 
Synopsis of Mexico-Northern Triangle FTA bilateral and global safeguards 
Requirements Bilateral safeguards Global safeguards applied on a 
Party's imports 
Trigger Rise in imports 9 As in the WTO 
Cause of serious injury or threat 
thereof 9 9 
Strictly necessary for counter situation 9 9 Criteria 
Determination of substantial 
contribution to the situation  9 
Suspension of further duty 
reduction  9 Measures allowed 
 
Increase in duty rate  To MFN rate or MFN rate preceding 
entry into force, whichever is lower As in the WTO 
Timing Maximum duration  4 years initially (1 year extension 
possible)  
Information of the institution of a 
proceeding through written notice 9 9 
Consultations 9 9 
Prior investigation 9 9 Conditions or limitations 
Re-imposition of safeguard 
measures on the same good  3 scenarios, based on duration of the 
safeguard and whether an extension 
was applied
a  
Additional tariff concessions 9 
 
on products covered by the TEP 9 Compensation 
Retaliation possible if no agreement 
on compensation 9 9 
Final Situation Tariff rate at termination of the 
safeguard measure Tariff foreseen originally 
in the TEP  
a The following are the scenarios:  
- Safeguard longer than two years, and extended - re-imposition not authorized. 
- Safeguard longer than two years, and not  extended - re-imposition authorized only  if a period as long as the duration 
of the safeguard has elapsed and upon agreement of the affected Party. 
- Safeguard up to two years, and extended by one year - re-imposition authorized only  if a period as long as the 
duration of the safeguard has elapsed. 
(iii) Safeguards for balance-of-payments reasons 
88. Article 20-06 allows a Party to adopt or main tain a measure that suspends, for a reasonable 
period, all or part of the benefits granted in the Treaty, whenever (a) the application of a provision 
results in serious economic and fina ncial disturbance in its territory, or (b) its balance-of-payments, 
including its monetary reserves, is seriously threat ened or faces serious difficulties.  The application  WT/REG212/2/Rev.1 
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  of any such temporary safeguards is to be communi cated "as soon as possible" to the other Parties, 
including an explanation of the economic and financ ial situation.  The conditions for the application 
of the measure include inter alia avoiding the creation of unnecessary injury to the other Parties' 
economic, trade and financial interests;  that it be te mporary;  and that it be progressively liberalized.  
The disciplines of Chapter VIII do not apply in these cases. 
(c) Anti-dumping and countervailing measures 
89. Chapter IX states that Parties reject unfair tr ade practices - defined as "imports of goods on 
dumping conditions or benefiting from subsidies that  cause injury to the domestic industry" - and 
recognize the need to eliminate domestic policies th at have trade-distorting effects (Article 9-02). 
90. The investigation, establishment and appli cation of countervailing measures (CVM) and 
anti-dumping duties are to be in accordance with  the national legislation and the relevant 
WTO provisions.  In cases of a regional investigati on, El Salvador, Guatemala and Honduras are to 
adopt the measure recommended by the Secretar iat for Central American Economic Integration 
(SIECA) which has followed the provisions of the Mexico-Northern Triangle Treaty
35 (Article 9-04 
and, as related to the latter, Annex 9-04).  These pr ovisions, contained in Artic les 9-05 to 9-20, detail 
procedures on the exchange of information,  notifications, rulings, hearings, etc. 
91. As at June 2009, no Northern Triangle country has activated these trade defence mechanisms, 
although Mexico conducted an investigation agai nst imports of standard tubing from Guatemala 
which resulted in the imposition of definitive an ti-dumping duties.  Guatemala challenged this 
decision before the WTO;  the Di spute Settlement Body adopted the Panel's report on 24 July 2007.  
Mexico revoked the measure following review pro ceedings, in accordance w ith the final decision 
published in the Official Journal of 24 January 2008.36 
(d) Subsidies and State-aid 
92. The Treaty also prohibits export subsidies on trade between the Parties and requires the 
elimination of any such subsidy granted at the en try into force of the Treaty, unless authorized under 
the WTO Agreements (Article 9-03);  the Parties have complied with this provision.  A temporary 
exception (on agricultural products) to the general pr ohibition of export subsidies was terminated by 
mid-2006 (Article 9-03, see also paragraph 100 be low).  In cases where s ubsidies granted by one 
Party cause injury to another Party's domestic industry, the affected Party may initiate an investigation. 
(e) Customs-related procedures 
93. Regulations, including the form and content of th e Certificate and Declaration of Origin, have 
been adopted in order to implement the disciplines of  Chapter VII;  they entered into force with the 
                                                     
 
35 In the context of the CACM, a "Central American Regulations on  Unfair Business Practices" has 
been in force since 1996 inter alia  "to develop the provisions established in the WTO Agreements".  The 
Regulations govern the application of anti-dumping or CVM between CACM members and between those 
members and non-member coun tries;  in the case of a complaint, th e SIECA shall analyse the case and issue a 
recommendation to the CACM's Execu tive Committee for a final decision. 
36 Report WT/DS331/R of 8 June 2007, adopted on 24 July 2007. WT/REG212/2/Rev.1 
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  Treaty and were modified in May 2004.
37 A Committee on Origin is established through Articles 7-12 
to inter alia  ensure effective application and administra tion of Chapters VI and VII of the Treaty. 
94. The Chapter provides for both a certificate and a declaration of origin in accordance with 
Article 7-02;  self-certification is the method used.  The Certificate of Origin, used to certify that that 
a good exported from one Party to another is originati ng, is to be filled and signed by the exporter for 
one or several import consignments of the sa me good during a time-frame  established in the 
certificate (a maximum of one year).  The Declaration of Origin is to be signed by the producer and provided voluntarily to the exporter in cases where the exporter is not the producer of the good. 
95. Importers are subject to various obligations (Ar ticle 7-03), in particular the completion of the 
national import declaration on the basis of the Ce rtificate of Origin.  In cases where the importer 
believes that the latter is incorrect , it shall correct it and pay any corresponding customs duty;  in such 
cases, the importer will not be sanctioned as a result of verification by the authorities.  Failure to comply with the requirements of the Article will result in refusal of preferential treatment.  The 
importer may ask for retroactive preferential treatment and reimbursement of customs duties paid 
within one year from the date of import.  Export obligations in Article 7-04,  aim in particular to 
clarify the steps exporters shall take in cases of the submission of incorrect information and the 
resulting sanctions they may face. 
96. There are under Article 7-05, three cases for wh ich no Certificate of Origin is required, 
provided that imports do not take place at differe nt times in order to circumvent certification 
requirements;  these are imports destined for re-export whose customs value is below US$1,000 
(an invoice indicating that the good is originating may be required);  imports not destined for re-export with a value lower than US$1,000 (in both cases a Party may establish a higher threshold);  
and imports of a good for which the importing Party h as waived the need for presenting the Certificate 
of Origin. 
97. Detailed rules are provided for regarding verifica tion (Article 7-07), which can be carried out 
either prior to or a posteriori of the import and is conducted by the authorities of the importing Party.  
Verification may involve written questionnaires to  be completed by exporters or producers, 
verification visits and other procedures.  Upon re quest by the importer, exporter or producer, the 
authorities of the importing party are to provide adva nce rulings (Article 7-10) prior to import relating 
to the granting of originating status to the im port;  these advance criteria however do not constitute 
necessary and essential requirements for the import of the goods under preferential treatment.  The 
Parties are to grant rights of review and appeal fo r determination of origin and advance rulings for 
importers, exporters and producers (Article 7-11). 
(f) Other regulations 
98. With relation to country of origin marks, Artic le 3-15 and Annex 3-15 clarify that the Parties 
are to apply the provisions of Article IX of the GATT 1994.  The Annex clarifies that any reasonable 
                                                     
 
37 The texts under the links are applied in the trade relationship between Mexico and Guatemala, 
Honduras and El Salvador (exports and imports);  these provisions are public and can be found on the following websites, together with the certificates of orig in and instructions on how to complete them: 
El Salvador:  http://www.minec.gob.sv/datco/default.asp?id=10&mnu=10
; 
Honduras:  http://www.sic.gob.hn ; 
Guatemala:  http:// www.mineco.gob.gt ; 
Mexico:  http://www.siicex.gob.mx/portalSii cex/SICETECA/Tratados/Tratados.htm .  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
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  marking of origin method is to be accepted by th e Parties and provides a list of those goods that are 
exempted from the marking of origin requirement. 
99. Under Article 3-16 and Annex 3-16 El Sa lvador, Guatemala and Honduras recognize 
"tequila" and "mezcal" as a distinctive product of Mexico, therefore not allowing the sale in their 
territory of any product under this marking unless provi ded in Mexico in conformity with its laws and 
regulations relating to the production of tequila and mescal. 
5. Sector-specific provisions on trade in goods 
(a) Trade in agricultural goods 
100. Chapter IV on the Agricultural Sector basically recalls that, with exception of the tariff rates, 
the disciplines of the WTO Agreement on Agriculture al so apply to intra-trade.  It foresees an annual 
review of the Parties' domestic support measures and clarifies that th ese may lead to an investigation 
of unfair trade practices (Article 4-06).  The Parties commit themselves to eliminate, within five years 
from the entry into force of the Agreement - i. e. by 15 March 2006 for El Salvador, Guatemala and 
Mexico and 1 June 2006 for Honduras - the granti ng of export subsidies on their mutual trade.  
Article 4-09 and its Annex provides the rules on speci al safeguards in agriculture (SSG, see Box III.2 
below);  different SSG regimes apply vis-à-vis  bilateral trade between Mexico and each of the 
Northern Triangle countries.  A Committee on Trade in  the Agricultural Sector is established, meeting 
at least twice a year, to inter alia  ensure follow-up on the disciplines of the Chapter and provide a 
forum for discussion on issues related to the Chapte r.  A Committee on the Analysis of the Sugar 
Sector is also established in accordance with A nnex 4-11;  it regulates the granting of preferential 
access to sugar, on an annual basis, on trade between Guatemala and Mexico. 
Box III.2 
Special Safeguard Regimes in th e Mexico-Northern Triangle FTA 
Main Characteristics of the SSG Regimes 
Applies  to trade between Mexico and th e three countries and vice-versa, with the exception of imports by 
Mexico from El Salvador. 
Common features of all SSG regimes : 
- The joint application of a SSG and a bilateral safeguard is forbidden. 
- SSG rate will be the lower of the base rate and the MFN rate. 
El Salvador-Mexico SSG  
- Trigger:  the activation of the SSG is to be defined. 
- Implementation:  through tariff-rate quotas (TRQs), with the in-quota tariff rate being the 
rate resulting from the TEP and the out of quota the lower of the base rate and the 
MFN rate.  In accordance with Section A of Chapter IV, initial quota amounts were set for 
specific products with an annual growth rate of 5% and 10%;  it was also established that the applicable in-quota tariff will correspond  to the elimination programme established for 
a specific product, and the out-o f-quota tariff will be the lowe r of the base rate and the 
current MFN rate.  The applica tion of the SSG is annual and automatic, i.e. it is triggered 
each year in accordan ce with the corresponding volume according to the percentage of 
growth. 
- Duration:  until the end of the calendar year. - The mechanism terminates once the TEP is finalized, i.e. when the elimination period for 
the product in question is over. 
- First-come, first-served basis. WT/REG212/2/Rev.1 
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  Guatemala-Mexico and Honduras-Mexico SSG  
- SSG may be applied between the second year  of entry into for ce of the Treaty and 
three years after the TEP for th at product has been finalized. 
- Triggered through the fulfilment of three cond itions (ratio of imports and imports growth). 
- No right to compensation. 
- Duration:  up to 12 months, with possibility of an extension of 12 months. 
- SSG may not be applied again to a product until a period equal to the duration of the 
original SSG has elapsed;  in such case, th e SSG shall not last more than 12 months. 
- SSG can only be re-applied once. 
- Different rules regarding duration and period of validity may be mutually agreed. 
- Goods excluded from the TEP may benefit from the SSG once incorporated therein. 
 
(b) Textile products 
101. In April 2005, the Treaty's Administrative Commission decided, by virtue of its 
Decision No. 10, to incorporate the textile produc ts of HS Chapters 50-63 into the TEP for trade 
between Mexico and Honduras.  This Decision ente red into force on 1 February 2006;  since then, 
trade in textiles between Mexico and Honduras has be nefited from a preferential regime, whereby all 
Mexican imports of Honduran textile products ar e duty-free, and Honduran imports of Mexican 
textiles were to become duty-free by 1 February 2008 at the latest. 
102. The final Article of Chapter III (3-19) and its Annex provides for "levels of temporary 
flexibility" - for certain textiles products and durin g a certain period for Mexico, El Salvador and 
Guatemala.  This temporary flexibility allows certain  products that do not meet the rules of origin 
requirements to still benefit from the preferences unde r the Treaty, provided that:  (a) the country and 
product are listed as beneficiaries of the scheme;  (b) imports take place prior to the expiry date of the 
scheme;  (c) imports nevertheless meet the rules of origin defined in Annex 6-26, which are less 
stringent than those applying generally (a lower leve l of transformation is required);  (d) imports are 
within the annual ceiling, set either in terms of th e value or the quantity, of imports;  and (e) the 
ceiling expressed in terms of the ratio of  tariff-line/total imports is respected.38 
103. Similar provisions applying to Mexico and H onduras were agreed in Decision No. 11 by the 
Treaty's Administrative Commission in April 2005 and entered into force on February 200639;  
however, in this case, the less stringent rules of or igin do not apply and the preferences applied to 
trade covered are those listed in Annex III to the Decision No. 10 by the Treaty's Administrative 
Commission. 
IV. TRADE IN SERVICES AND INVESTMENT 
A. SCOPE AND DEFINITIONS  
104. The Treaty has a total of five Chapters dea ling with services - namely X on "Cross-border 
Trade in Services", XI on "Financial Servi ces", XII on "Telecommunications", XIII on "Temporary 
Entry for Business Persons", and partially Chap ter XIV on "Investment".  The definition of 
"cross-border trade in services", included in Article 10-01, covers the equivalent of GATS modes of 
                                                      
38 Table AII.2 in Annex II provides an indication of the levels of temporary flexibility applied. 
39 Decision No. 11 of the Treaty's Administrative Commission on National Treatment and Market 
Access on Goods that modifies Article 3-19 of the Treaty by adding to it paragraphs 8-17.  The text of this 
Decision can be found at http://www.economia.gob.mx/pics/pages/5200_5206_6_base/No_11_DOC250908.pdf.  WT/REG212/2/Rev.1 
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  delivery 1, 2 and partially 4;  GATS mode 3 (co mmercial presence) is covered in the Investment 
Chapter and mode 4 (temporary movement of persons) is also covered in Chapter XIII. 
105. The provisions of Chapter X apply to measures take n or adopted by a Party with respect to the 
cross-border trade in services undertaken by services providers from another Party.  Article 10-02(4) 
clarifies that federal and central governments are to ensure that non-governmental bodies exercising activities of a governmental nature on the basis of na tional legislation comply with the provisions of 
the Chapter.  Article 10-02(5) clarifies that in sect ors for which annexes exist, the provisions of the 
Chapter will apply under the terms and c onditions stipulated in those annexes. 
106. The following are not covered by Chapter's X disciplines: 
(a) Air transport services
40; 
(b) subsidies and donations by a Party or a State enterprise; 
(c) government services or functions; 
(d) access to a Party's employment market or right of permanent employment in that 
Party by nationals of another Party; 
(e) government procurement by a Party or a State-enterprise; 
(f) financial services, which are covered by Chap ter XI.  While Chapter XI on Financial 
Services provides for the Parties to negotia te their commitments and reservations 
within two years of the Treaty's entry into force41, by February 2009 agreement had 
not been reached on these elements;  therefore, at that time, financial services 
remained excluded from the Treaty's coverage.  The Parties have begun discussions 
with a view to implementing this commitm ent.  Furthermore, under Article 11-15 and 
Annex 11-15, Guatemala is not subject to this time-frame; 
(g) road transport, on a temporary basis for Guatemala, Honduras and Mexico, and 
permanently for El Salvador.  Annex 10-09 provides for the beginning of negotiations 
on the liberalization of this subsector within six months of the entry into force of the 
Treaty.  As at June 2009, Guatemala, Hondur as and Mexico continue to negotiate this 
matter;  El Salvador, which did not assume any commitment to initiate negotiations, participates in the discussions as an observer. 
107. Chapter XIV on Investment provides for the application of both national and most-favoured 
nation treatment to investors from other Parties, and their investments, in relation to the establishment, 
acquisition, expansion, administration, conduct,  operation, and sale of investment, or other 
investment-related provision.  The provisions of th is Chapter that are relevant for GATS mode 3 on 
commercial presence are described in the relevant se ctions below.  Other disciplines of the Chapter 
include inter alia  transfers, expropriation and indemnification,  extraterritorial application of a Party's 
legislation, and promotion of i nvestments.  In cases of inconsistency between a provision of this 
Chapter and any other Chapter, the provision of the latter shall prevail to the extent of the 
                                                     
 
40 Aircraft repair and maintenance,  specialized air transport services , and computer reservation systems 
are however covered by the disciplines of Chapter X. 
41 This period is extended automatically for an additional two years in case a Party is unable to comply 
with the initial time-frame. WT/REG212/2/Rev.1 
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Page 54 
  
  inconsistency.  The Chapter also includes a me chanism to settle disputes between a Party and 
investors from another Party. 
B. D
ENIAL OF BENEFITS  
108. Subject to prior notification and consultation, a Party may deny the benefits of Chapter X to a 
services provider of the other Party whenever it is established that the service is being provided by a 
supplier that has no "substantial" business activities in the territory of another Party, and the service is 
owned or controlled by persons of a non-Party, in  accordance with the legislation of that Party 
(Article 10-13). 
109. Under Article 11-16, a Party may deny, totally or  partially, the benefits of Chapter XI to a 
financial institution or a financial services supplier of the other Part y whenever it finds that the service 
is being provided by a supplier not engaged in "im portant" business activities in the territory of any of 
the Parties, or - in conformity with national legisl ation - the service is owned or controlled by persons 
of a non-Party.  The decision on the denial of benef its is subject to prior notification and consultation. 
110. In accordance with Article 14-14, a Party may also  deny the benefits of Chapter XIV to an 
investor from the other Party that is an enterprise of  the Party, and its investments, if investors of a 
non-Party own or control the enterprise, and 
(a) The enterprise does not have "substantial" business activities in the territory of the 
Party, in accordance with its domestic legisla tion.  In this case, previous notification 
and consultation is required;  or 
(b) the Party does not maintain diplomatic re lations with the non-Party from where the 
investor originates, and the denying Party adopts or maintains me asures with respect 
to the non-Party that prohibit such transactions, or that would be violated or circumvented if the benefits of this Chapte r were accorded to the enterprise or to its 
investments. 
C. G
ENERAL PROVISIONS ON TRADE IN SERVICES  
111. Liberalization of trade in services follows a "negative list" approach, whereby all services 
sectors and modes of supply are open to competition from nationals of the other Party, except those 
listed in paragraph 106 above .  Limitations to this liberalization - in terms of sectors or subsectors, 
modes of delivery, or general disciplines - may ho wever apply;  these "reservations and exceptions" 
are listed by each of the four Parties in Anne xes I and II of the Treaty (Article 10-06 and 14-09). 
1. Market access 
112. No provision of the type under GATS Article XVI exists in the Treaty;  rather, market access 
is based on the "negative list" approach and by ex ceptions and reservations in Annexes I and II of the 
Treaty. 
113. Parties have committed themselves, within six mont hs from the date of entry into force of the 
Treaty, to list in Annex V any restrictive measures ma intained at federal and/or state level and to not 
introduce new ones (Article 10-08).  The Parties have  exchanged their lists of restrictive measures.  WT/REG212/2/Rev.1 
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  2. National and MFN treatment 
114. Under Article 10-04, the Parties commit themselve s to grant services and service suppliers of 
the other Party treatment no less favourable than that granted to their own like services and service 
suppliers.  As provided for in Ar ticles 11-06 and 14-04, national treat ment is also accorded to the 
Parties' financial institutions, investments and inv estors with regard to establishment, acquisition, 
expansion, management, conduct, operation, sales and an y other form of financial transfer within the 
territories of the Parties.  The Treaty further speci fies that treatment no less favourable can be granted 
through either formally identical or formally di fferent treatment, as long as this difference does not 
change the conditions of competition. 
115. Under Article 10-03, each Party agreed to  immediately and unconditionally accord to 
cross-border services and service providers of another Party treatment no less favourable than it accords to like services and like service providers of  any other country.  Under Articles 11-07 and 
14-05, MFN treatment is also granted to similar financial institutions, investors and investments.  
Additionally, neither Party may require that an enterp rise of that Party that is an investment by an 
investor from the other Party appo int to senior management positions individuals of any particular 
nationality or who are resident in its territory or  a combination of both elements (Article 11-14). 
116. Paragraph 2 of Article 14-05 provides a MFN der ogation for preferential treatment granted to 
an investor of a non-Party or its investments resulting from existing agre ements establishing a free 
trade area, a customs union, a common market, an economic and monetary union or any similar 
institution, or avoiding double taxation. 
117. National and MFN treatment provisions do not apply as follows: 
(a) For cross-border trade in services, to any m easure adopted or maintained in sectors, 
subsectors or activities included in Annex II (Article 10-06(3)).  The level of 
nonconformity of nonconforming measures listed in Annex I, vis-à-vis  these 
disciplines cannot be increased; 
(b) as regards investment, any measure listed in Annexes I and III
42, including their 
renewal or reform, provided their leve l of nonconformity is not increased 
(Article 14-09(1)). 
3. Commercial presence 
118. Under Articles 10-05 and 11-05, neither Party ma y require a service provider of the other 
Party to establish or maintain a representative office or any form of enterprise, or to be resident, in its 
territory as a condition for the cross-border provisi on of a service As regards cross-border trade in 
services, this requirement is waived with respect to Annex II measures;  this is also the case for 
Annex I measures provided their level of nonconformity vis-à-vis  Article 10-05 is not increased. 
                                                      
42 The following have been listed in Parties' Annex III:  El Salvador:  currency emission and postal 
services.  Guatemala:  currency emi ssion.  Honduras:  electri cal energy, services re lated to the arms and 
ammunition industry, postal services, sewage services, lotte ry services, exploitation of airport services, currency 
emission.  Mexico:  services related to petroleum a nd other petrochemical goods,  electrical energy, nuclear 
energy and treatment of radioactive minerals, telegraph and radiotelegraph services, postal services, currency emission, control, inspection and security of maritime and land ports, telecommunications for aeronautical 
services. WT/REG212/2/Rev.1 
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Page 56 
  
  4. Movement of natural persons 
119. Chapter XIII deals with the temporary moveme nt of certain categories of business persons
43 
supplying services under the Treaty.  It reflects the preferential trading relationship between the 
Parties, the desirability of facilitating temporary entry on a reciprocal basis and of establishing 
transparent criteria and procedures for temporary entr y, and the need to ensure border security and to 
protect the domestic labour force and permanent employment in their respective territories 
(Article 13-02). 
120. Each Party is committed to granting temporary entry to business persons, who are otherwise 
qualified for entry under applicable measures rela ting to public health and safety and national 
security, in accordance with the provisions of Chapter XIII, including Annex 13-04.44  Accordingly, 
the following categories of business persons are regulated: 
• Business visitors must prove the nationality of a Party;  declare they are engaged in a 
business activity and describe the purpose of entry;  demonstrate that the proposed 
business activity is international in scope and that the business person is not seeking 
entry to the local labour market. 
 
• Traders and investors must prove they are engaged in substantial trade in goods or 
services principally between the territory of  the Party of which the business person is 
a national and the territory of the other Part y into which entry is sought;  or establish, 
develop, administer or provide advice or key technical services for the operation of an 
investment to which the business person or the business person's enterprise has 
committed, or is in the process of committing, a substantial amount of capital. 
 
• Intra-company transferees may be required to have been continuously employed by 
the enterprise for one year within the three-year period immediately preceding the 
date of the application for admission. 
 
121. Under Article 13-04(2), a Party may refuse to issue an immigration document authorizing 
employment to a business person where the temporar y entry of that person might adversely affect 
(a) the settlement of any labour dispute that is in progress at the place or intended place of 
employment;  or (b) the employment of any person w ho is involved in such dispute.  In this case, the 
Party refusing to issue an immigration document must give in writing, to the business person, the 
reasons for the refusal and promptly notify these reasons to the other Party in writing. 
122. A Committee for the Temporary Entry of Business  Persons is establishe d under Article 13-06.  
Article 13-07 limits the Party's rights to have recour se to dispute settlement to those situations where 
the refusal to grant a temporary entry authoriza tion is a recurrent problem and the business person 
concerned has exhausted all possible admini strative recourse for the issue concerned. 
                                                      
43 Under Article 13-01, "business person" means a citizen of a Party who is engaged in trade in goods, 
the provision of services or the conduct of investment activities. 
44 National legislation relevant to this Chapter is indicated in Appendix 2 of Annex 13-04 and includes:  
(a) for El Salvador, the "Ley de Migración", Legisl ative Decree No. 2772 of 19 December 1958;  (b) for 
Guatemala, the "Ley de Migración", Decree No. 95-98 of the Congress;  (c) for Honduras, the "Ley de 
Población y Política Migratoria", Decree No. 34 of 25  September 1970, and the "Acuerdo No. 8 sobre 
Procedimientos y Facilididades Migratoria a Inversionist as y Comerciantes Estranjeros" of 19 August 1988;  
and (d) for Mexico, the "Ley General de Población" of 1974, together with its revisions and regulations.  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
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  123. For financial services, the Parties also agreed  to recognize the right of establishment of 
investors from a Party in the territory of anothe r Party with regard to any of the establishment 
modalities provided for in that nati onal legislation (Article 11-04). 
5. Performance requirements and restriction s for senior management and board of 
directors 
124. Article 14-07 prohibits linking the authorization
45 of a foreign investment with compliance 
with the following performance requirements: 
(a) Export requirements relating to a given ty pe, level or percentage of goods and 
services; 
(b) local content requirements; 
(c) granting preferences to domestically-produ ced or supplied goods and services, or 
acquisition of goods or services fro m domestic producers or suppliers; 
(d) relating the total volume or value of imports to exports or capital inflows resulting 
from the investment; 
(e) restricting the sale in the domestic market of the product or service resulting from the 
investment on the basis of its export or capital earnings; 
(f) transfer of technology;  and 
(g) exclusive supply of the goods or services in a given regional or world market. 
125. While Article 14-08 prohibits restrictions on the nationality of senior management, unless 
otherwise specified in domestic legi slation, nationality or residence requirements for the majority of 
the board of directors are authorized. 
126. The requirements described in paragraphs 124- 125 above do not apply to any measure listed 
in Annexes I and III including their renewal and re form provided the level of nonconformity does not 
increase (Article 14-09:1). 
D. LIBERALIZATION COMMITMENTS  
1. Mexico 
127. Mexico has listed existing reservations at the le vels of both federal and state governments;  
the former (totalling 53 reservations) are summarized in Table IV.1.46  These represent limitations to 
MFN and national treatment and local presence (respectively Articles 10-03, 10-04 and 10-05) in 
Annex I, generally in the form of nationality requi rements and/or ownership interests.  Mexico has 
taken ten MFN reservations in telecommunications, fishing, professional and transportation services. 
                                                      
45 The authorization relates to the establishment, acquisition, expansion, administration, conduct or 
operation of an investment. 
46 A total of 104 reservations have been taken at the level of the state government;  they are also listed 
in Annex I to the Treaty. WT/REG212/2/Rev.1 
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  128. As regards GATS horizontal commitments commercial presence limitations, providing 
conditions for foreign participation in activities re served for Mexican nati onals, and land ownership 
on the coastline and along frontiers, are maintained.  In relation to the presence of natural persons, the 
restrictions of the Treaty are more liberal than those under the GATS.  The GATS limitation on 
maximum foreign ownership, normally up to 49% of the registered capital of enterprises, may be waived, subject to prior authorization, for inv estments from Northern Triangle countries above a 
given threshold (US$150 million in 2003, increased annually). 
129. Sectoral liberalization under the Treaty goes beyond that under the GATS, encompassing a 
significantly higher number of subsectors.
47  For example, legal services, social services, maritime 
and inland waterways transport services, excluded under the GATS, are either fully or partially 
liberalized under the Treaty.  Conversely, no co mmitments on financial services have yet been 
undertaken, pending the conclusion of the negotia tions referred to in paragraph 106(f) above. 
Table IV.1 
Existing non-conforming measures  (at the Federal level of governme nt) listed by Mexico in Annex I 
Sector Obligations  Mode Descri ption/Reduction of Restriction 
All NT I Limitation on property rights over land and water for foreign 
nationals or enterprises. 
All NT I Criteria for permitting investment:  (a) effects on employment and 
training of workers;  (b) technological contribution;  (c) compliance 
with environmental provisions;  and (d) contribution to the 
competitiveness of Mexican production. 
All NT I Permission by the National Commission on Foreign Investment 
(NCFI) is required for investment above 49% by foreign investors. 
From 2003, the threshold for investors from the Northern Triangle is 
increased annually. 
All NT/SMBD I Maximum limit of 10% for foreigners and for foreign ownership in a 
Mexican production cooperative.  No  foreign nationals in general 
administrative functions or managerial activities. 
All NT I Nationality requirement for a mi cro-industry enterprise (run by up to 
15 workers and whose annual sales do not exceed an amount 
determined by the Ministry of Economy) and no foreign partners.  
Agriculture, livestock, forestry, and lumber activities NT I Nationality requirement to own land for these activities.  Maximum 
49% participation by forei gn investors through shares. 
Trade of arms and ammunition NT I Maximum 49% par ticipation by foreign investors or investments. 
Communication (leisure services) NT/LP I/CBTS Concessi onª by the Secretary of Communication and Transports 
(SCT) required.  Only Mexican nationals and Mexican companies 
with foreign exclusion clauses can provide such services.  Reservation does not apply to production, sale or  authorization rights for radio and 
TV programmes. 
Communication (leisure services) NT/PR I/CBTS Imports of radio and TV programmes subject to previous 
authorization by the Government Secretary. 
Communication (leisure services) NT/LP CBTS Requirement s for the use of Spanish or Spanish subtitles in 
advertisements.  Restrictions on di ffusion of foreign advertisements. 
Nationality requirements for announcers. 
Communication (leisure services) - cable TV NT/LP I/CBTS Concession by the SCT required for constructing and/or operating 
cable TV, given only to Mexican nationals and Mexican companies. 
Maximum 49% participation by in vestors from Northern Triangle 
countries. 
                                                      
47 In the GATS, Mexico has specific commitments in ten of the 12 GATS sectors, the exceptions being 
environmental services and recreational, cultural and sporting services;  among these, however, commitments 
covered only two thirds of the subsectors, excluding e.g. legal services, social services and maritime transport 
services.  Mexico participated in the negotiations on  basic telecommunications and financial services that 
followed the Uruguay Round, and the corresponding commitments are featured in the Fourth and Fifth GATS 
Protocols.  Mexico also undertook to abide by the Reference Paper on telecommunications.  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 59 
  
  Sector Obligations  Mode Descri ption/Reduction of Restriction 
Telecommunications services and 
public networks (commercial 
agencies) NT/MFN/LP I/CBTS Permit by the SCT is required, and is only issued to companies
established under Mexican law. 
Telecommunication services and 
public networks NT/MFN/LP I/CBTS Depending on the service, a concession by, or a registry in, the SCT 
required.  Exclusive rights granted to "Telecomunicaciones de Mexico" for links with Intelsat and I nmarsat.  Right of reservation for 
investment in maritime telecommunications.  Maximum 49% 
participation by fo reign investors. 
Telephone services, i.e. mobile and 
public telephone services, and 
telecommunication installation NT/MFN/LP I/CBTS Concession by the SCT required and granted only to Mexican 
nationals and Mexican companies.  Exclusive rights granted to 
"Telecomunicaciones de Mexico" for links with Intelsat and Inmarsat. 
Maximum 49% participation by forei gn investors.  Permission by the 
NCFI required for foreign investment s above this threshold in mobile 
phone services. 
Communications, telecommunications and transport NT I Restriction on investment by foreign governments and foreign state 
enterprises or their investments in Mexican enterprises in
communications, transportation and other general means of 
communication. 
Construction - petroleum and petroleum-derivative pipelines;  
drilling of oil and gas wells NT I Prohibition on risk-sharing contr acts.  If non-risk-sharing, permission 
by the NCFI required for foreign investment above 49%. 
Construction - road and water transports NT/LP CBTS Concession 
by the SCT required for constructing and/or operating 
works in relation to road and wate r transport, and given only to 
Mexican nationals and Mexican companies. 
Energy - retail trade in gasoline and diesel NT I Nationality requirement. 
Energy - retail trade in 
liquefied-gas fuels NT I Nationality requirement.  
Energy - supply of fuel and 
lubricants for aircraft and railway 
equipment NT I Maximum 49% ownership by foreign investors. 
Printing, editing and associated 
industries - periodicals NT I 100% ownership by foreign inve stors allowed for printing and/or 
distribution of periodicals published simultaneously outside the 
Mexican territory.  Maximum 49% ownership by foreign investors for 
periodicals printed and/or published only in Mexico. 
Manufacture of goods - explosives and fireworks;  firearms and 
cartridges NT I Maximum 49% ownership by foreign investors. 
Manufacture of goods PR I Performance requiremen ts for authorized exporters eliminated on 
1.1.2001. 
Manufacture of goods PR I Differentiation between  "direct and indirect exporters" based on 
annual total sales disc ontinued on 1.1.2001. 
Manufacture of goods - automotive 
products PR I Requirements that are incompatible with Article 14-07 on PR. 
Reduction of restriction in accordance with deadlines under domestic 
law. 
Manufacture of goods - "maquilladoras" PR I Limitation on sales in the domestic market in terms of value of 
exports.  Reductions of restricti on as of 1.1.2000, restriction 
eliminated on 1.1.2001. 
Fishing NT/MFN/LP CBTS Nationality/permit requirement. 
Fishing - in ocean;  coastal waters;  and inland waters NT/MFN I Maximum 49% foreign ownershi p in coastal fishing, fresh water 
fishing and fishing in the Exclusive Economic Zone.  Permission by 
the NCFI required for foreign investment above 49% for high seas 
fishing. 
Services to agriculture NT/LP CBTS Concession by authorities required for spraying pesticides based on 
nationality requirement. 
Education services - private schools NT I Permission by the NCFI required for foreign investment above 49%. WT/REG212/2/Rev.1 
WT/REG213/2/Rev.1 WT/REG214/2/Rev.1 
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  Sector Obligations  Mode Descri ption/Reduction of Restriction 
Professional, technical and 
specialized services:  medical 
doctors - medical and dental 
services provided by the private 
sector NT CBTS Nationality/licence requirements for in-house medical services in 
Mexican enterprises. 
Professional, technical and specialized services - customs 
services and representative agencies NT I/CBTS Nationality requirement (by birth) for a customs broker.  Foreign
investors and investments are not allowed in a customs agency. 
Professional, technical and specialized services - public 
brokers NT I/CBTS Nationality requirement for public brokers;  association with 
non-public brokers is not allowed.  
Professional, technical and 
specialized services - legal services NT/MFN I/CBTS Permission by the NCFI re quired for foreign investment above 49%. 
In cases where a relevant treaty applies, the professional exercise by 
foreigners is subject to reciprocity.  Only lawyers authorized to 
practice in Mexico can participate in a settlement;  lawyers authorized to exercise in the Northern Triangle countries can associate 
themselves with those exercising in Mexico, subject to numeric 
limitations. 
Professional services NT/MFN/LP CBTS The provision of pr ofessional services by foreigners in the Federal 
District is subject to the provisions of treaties subscribed to by 
Mexico.  In the absence of these, r eciprocity is required.  Foreigners 
are to have an address in Mexico.  
Religious services - services of religious organizations SMBD/LP I/CBTS Nationality requirement for re presentatives of religious associations. 
Registry of religious organizations is subject to establishment 
requirements. 
Air transport - repair of aircrafts LP CBTS Permit by the SCT is required. 
Air transport - aeronautical navigation services, airport and 
heliport management services NT/LP I/CBTS Concession by the SCT required for constructing and/or operating 
airports and heliports, granted only to Mexican commercial 
companies.  Permission by the NCFI required for foreign investment above 49%. 
Air transport - scheduled air 
transport services on domestically 
registered aircraft, non-schedules air transport (air taxis) NT/SMBD I Foreign investors have a maximum 25% of voting shares in a 
company.  Nationality requirement for the chairman, the board of 
directors and managing officers.  Only companies complying with these restrictions may register an aircraft in Mexico. 
Specialty air services NT/LP/ 
SMBD I/CBTS Foreign investors have a maximum 25% of voting shares in an 
company.  Nationality requirement for the chairman, the board of 
directors and managing officers.  Permit by the SCT required, and 
granted for foreigners for certain listed services only. 
Water transport - integral port 
management  NT I Maximum 49% foreign ownership. 
Water transport - construction and 
repair of ships NT/LP CBTS Concession by the SCT required for establishing and/or operating a 
shipyard, granted only to Mexican nationals and Mexican companies. 
Water transport - loading and 
unloading services NT/LP CBTS Concession by the SCT require d for constructing and/or operating a 
maritime terminal, granted only to Mexican nationals and Mexican 
companies.  Permit by the SCT required for providing storage and 
stowing services, granted only to Mexican nationals and Mexican companies.  Permission by the NCFI required for foreign investment 
above 49% for port services for ship s as regards internal navigation. 
Water transport - piloting port 
services NT I Maximum 49% foreign ownership. 
Water transport - services of 
international maritime 
transportation, cabotage maritime, 
international and cabotage towing, internal port water transportation, river and lake transportation  NT/MFN I/CBTS Restrictions regarding the nationality of the shipping company apply 
for various services, including the possibility of reserving them 
exclusively for Mexican companies;  the SCT plays a major role in 
applying the restrictions.  A maximum 49% participation by foreign investors in internal navigation and cabotage services, except for tourist cruises and exploitation of  dredgers and maritime devices. 
Permission by the NCFI required fo r foreign investment above 49% 
for exploitation of ships for intern ational maritime transportation.  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 61 
  
  Sector Obligations  Mode Descri ption/Reduction of Restriction 
Transport - construction and 
operation of pipelines carrying 
goods other than energy or basic 
petrochemicals NT/LP CBTS Concession by authorities re quired based on nationality requirement. 
Transport - specialized personnel, 
i.e. captains, pilots, owners, 
machinists, mechanics and crew of 
ships and planes of Mexican flag, port captains, port pilots and 
airfields commanders NT CBTS Restricted to Mexicans by birth. 
Transport - construction, operation 
and exploitation of railroads NT I Permission by the NCFI required for foreign investment above 49% 
on lines of general communication and public services.  
Land transport - establishment or 
operation of bus or truck stations or 
terminals NT/MFN/LP I/CBTS Permit by the SCT required and granted only to Mexican nationals 
and Mexican companies.  Maximum 49% foreign ownership; 
restriction reduced on 1.1.2001 and eliminated on 1.1.04. 
Land transport - road and bridge management services and auxiliary 
services NT/LP CBTS Concession by the SCT required and granted only to Mexican 
nationals and Mexican companies. 
Land transportation:  construction materials transport, moving, other 
specialized freight transport, general freight transport, 
long-distance passenger bus and 
coach transport, tourist transport services NT/MFN/LP I/CBTS For inter-city tourist and fr eight transport services, a permit by the 
SCT is required, and granted only to Mexican nationals and Mexican 
companies with foreign exclusion clauses.  Truck or bus services for the transport of goods or persons between two points in Mexico is 
reserved for Mexican nationals a nd Mexican companies with foreign 
exclusion clauses, operated with equi pment registered in Mexico by a 
Mexican driver.  Packaging and me ssenger services require a permit 
from the SCT based on nationality requirement.  Foreign investment 
prohibited for certain trucks and buses services.  A maximum 49% 
participation by foreign invest ors for inter-city, tourism or 
international freight transport services;  restriction reduced on 
1.1.2001 and eliminated on 1.1.04.  
Land transport - railway crew  NT CBTS Nationality requirement. 
Land transportation:  local bus;  
school bus;  and taxi and other 
collective transportation  NT I/CBTS Nationality requirement. 
Note: CBTS:  Cross-border trade in services;  I:  Investment;  LP :  Local presence requirements;  MFN:  Restriction to MFN trea tment;  
NT: National treatment restriction;  SMBD:  Senior management a nd Boards of Directors restricti on;  PR:  Performance requiremen ts. 
a In the case of Mexico's reservations, a "concession" means an authorization provided by the State to a person to exploit a na tural 
resource or provide a service, for which Mexican nationals a nd Mexican enterprises are gran ted priority over foreigners.  
Source : Annex I of the Treaty. 
130. In addition to the above reservations, whose nonconformity cannot be increased, Mexico has 
reserved the right to maintain, or adopt new or more  restrictive, measures as listed in the Annex II and 
described in Table IV.2.  MFN reservations have been taken for maritime telecommunications and 
services related to petroleum and other petrochemical goods. 
Table IV.2 
Non-conforming measures listed by Mexico in Annex II 
Sector Obligations Mode Description 
All NT CBTS Any measure restricting the ac quisition, sale or other disposition of 
bonds, treasury bills or any other kind of debt security issued by the 
federal, state or local government. 
Communications - first class postal services, telegraphy and 
radiotelegraphy services NT CBTS Reserved for the Mexican State. 
Communications - maritime 
telecommunications services and networks NT/MFN/LP CBTS Any measure relating to the supply of maritime telecommunications 
services. WT/REG212/2/Rev.1 
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Page 62 
  
  Sector Obligations Mode Description 
Communications - 
telecommunications for 
aeronautical services NT/LP CBTS Any measure relating to the su pply of air traffic control services; 
aeronautical meteorology;  aeronautical telecommunications;  and other 
telecommunications services relating to air navigation services. 
Energy - services related to petroleum and other petrochemical goods NT/MFN/LP CBTS Any measure relating to serv ices associated with energy and basic 
petrochemical goods. 
Note: CBTS:  Cross-border trade in services;  LP:  Local presence requirements;  MFN:  Restriction to MFN treatment;  NT:  Nati onal 
treatment restriction. 
Source : Annex II of the Treaty. 
2. El Salvador 
131. El Salvador has listed existing reservations in tw o separate sections, A and B;  those listed in 
the latter are not subject, for a given period specifi ed therein, to the disciplines of Article 14-09 as 
regards national treatment, senior management and boa rds of directors restrictions, and performance 
requirements.  That means that, for any Section B reservation, other than MFN, its level of 
incompatibility vis-à-vis  Articles 14-04, 14-07 and 14-08 may be increased during a certain period. 
132. El Salvador's commitments under this Treaty d eepen its GATS commitments, particularly in 
terms of sectoral coverage.48 
133. With regard to measures of general applicati on, El Salvador withdrew a series of general 
limitations, which are scheduled under the GATS, su ch as the limitations on the proportion of profits 
and payments for the right to use foreign trademarks  and patents which may be remitted abroad;  the 
compulsory withholding tax of 20% on income (other  than dividends) obtained within its territory;  
and nationality restrictions restric ting foreigners to up to 10% of a company's employees.  However, 
in line with its GATS reservation, foreign (i.e., no n-Central American) investment in small-scale 
commerce, industry and supply of services is prohibited. 
134. Contrary to its commitments under the GATS, most business services, including professional 
services, have been liberalized by El Salvador under the Treaty.49  Restrictions remain, however, for 
all professional services, where El Salvador reser ved its rights to adopt or maintain any measure 
affecting cross-border supply, as well as with resp ect to advertising services (and other audiovisual 
services), where at least 90% of the production and recording of any commercial advertisement for 
use in the country's public communications me dia, meaning over-the-air television and radio 
broadcasts and printed material that originate in El Salvador, must be carried out by enterprises 
organized under Salvadoran law. 
135. In the communications sector, the supply of po stal services has been reserved for the 
Government (as per Annex III), while courier se rvices and telecommunications have been fully 
liberalized.  Reservations in the communications sector are focused on audiovisual services, where the 
supply of radio and television broa dcasting services through commercia l presence is subject to a 49% 
foreign equity cap.  El Salvador also reserves the ri ght to adopt or maintain any measures that restrict 
the cross-border supply of network services necess ary for the transmission of television and radio 
                                                      
48 El Salvador's commitments under the GATS cover Business Services, Communication Services 
(Telecommunications), Environmental Services, Financial Services, Tourism and Travel Related Services, and 
Transport Services. 
49 Business services commitments under the GATS relate to:  some subsectors of legal services, 
accounting and auditing services, tax a dvisory services, architectural serv ices, engineering services, data 
processing services, leasing or rental services for means of transport withou t operators, and advertising services.  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 63 
  
  signals, for a period of two years after the entry into  force of the Treaty;  the measures in force once 
this period elapses, will be considered as the only r eservations lodged.  Furthermore, restrictions are 
imposed on commercial advertisements (described in the previous paragraph), and on radio presenters 
and broadcasters, who must be Salvadoran. 
136. In its schedule of specific commitments under th e GATS, El Salvador has no commitments in 
construction services or related engineering services, distribution services or education services.  In construction, El Salvador reserves the right, for a period of two years, to adopt or maintain any 
measures that restrict cross-border supply;  the measu res in force at the end of that period will be 
considered to be the only reservations lodged.  It al so reserved its right, for a period of two years, to 
adopt or maintain any measures restricting investme nt in the construction sector.  Education services 
are not subject to any reservation under the Treaty, while for distribution services, nationality restrictions apply to the organizers of comme rcial centres or establishments in seaports. 
137. Environmental, social and health, and tourism and travel-related services have all been fully 
liberalized under the Treaty.  Except for entertainm ent services, for which restrictions on artists and 
circuses include licences, payment, duration and na tional presence, the other recreational, cultural and 
sporting services are fully liberalized. 
138. The transport sector is another area where the Tr eaty marks a step forward in relation to the 
GATS, where El Salvador has only made commitme nts for aircraft maintenance and repair.  The 
bilateral commitments are subject to some limita tions, though.  For mariti me transport services, 
El Salvador reserves coastal trade and navigation between Salvadoran ports for Salvadoran flag 
vessels, which must be organized under Salvadoran law, have Salvadoran captains, and 80% of the 
crew be Salvadoran nationals.  In the case of air transport services, the principle of reciprocity is 
applied to the supply of specialized air services and support services for air transport, the former being 
also subject to an economic needs test.  For road  transport, El Salvador reserves the right, for 
two years after the entry into force of the Treaty, to implement and maintain any measure restricting 
cross-border supply. 
Table IV.3 
Non-conforming measures listed by El Salvador in Annex I 
Sector/Subsector Obligations Mode De scription/Reduction of Restriction 
Section A    
All sectors NT 
MFN I Advance authorization and minimum deposit required for trade and 
establishment. 
All sectors NT/MFN I Foreign ownership of  rural properties requires reciprocity for 
Salvadorans, except when land is  for industrial establishments. 
All sectors NT/SMBD 
MFN I Mexican investors cannot invest in small enterprises in trade, industry 
and services.  Foreigners cannot have the posts of administrator, 
director, manager or representative of a small enterprise. 
Cooperative production 
associations NT I Minimum of three-qua rters of the associates have to be Salvadoran. 
Fisheries NT/MFN/LP I/CBTS Nationality limitations  for artisan fishery and technical maritime 
fishery.  Cooperatives and commer cial enterprises are allowed in 
artisan and technical maritime fisheries.  Commercial enterprises 
operating artisan fisheries require Sa lvadoran ownership of more than 
90% with over 60% of associates being artisan fishermen (over 50% for technical maritime fisherie s).  Foreign governments cannot 
participate in any of these activities.   Ships dedicated to any of these 
activities have to be registered in El Salvador. 
Table IV.3 (Cont'd)WT/REG212/2/Rev.1 
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Page 64 
  
  Sector/Subsector Obligations Mode De scription/Reduction of Restriction 
Fisheries - aquaculture LP CBTS Permanent residence st atus required for natural or juridical persons of 
foreign origin to engage in aquaculture. 
Audiovisual services - advertisement and radio and TV services NT/MFN/LP I/CBTS Production of commercial advertisements using public 
communications require 90% of national elements;  if that is not the 
case, compensation must be paid.  Existing preferences for Central American countries are not extended to Mexico. 
Audiovisual services - radio and TV 
services NT CBTS Handling of radio diffusion stations reserved for Salvadorans by birth. 
Announcers are to be Salvadoran.  
Audiovisual services - transmission of radio and TV programmes NT I Concessions and licences for diffusion of programmes granted only to 
Salvadorans by birth or Salvadoran  juridical persons with a minimum 
51% of Salvadoran ownership.  
Distribution Services - intermediary 
services, commercial wholesale and 
retail services NT/PR I/CBTS Permit for organizing commerci al establishments in maritime ports 
required;  such permits are granted to natural persons of Salvadoran 
nationality (by preference Salvadoran s by birth), and to juridical 
persons (also by preference Salvadorans). 
Recreational, cultural and sporting 
services (other than audiovisual 
services) - entertainment services (including theatre, live bands and 
circus services) NT CBTS Exercise of paid activities by foreign artists requires advance 
authorization from the Ministry of the Interior.  Advance payment, or 
deposit of a caution, for the ri ght of performance required. 
Performance by foreign artists or groups is limited to 30 days per 
year. 
Recreational, cultural and sporting services (other than audiovisual 
services) - entertainment services 
(including theatre, live bands and 
circus services) NT CBTS Performance by a foreign circus requires advance authorization from 
the Ministry of the Interior.  Payment for a right to perform required, 
including a caution.  Performance by foreign circuses in San Salvador 
is limited to 30 days per year. 
Recreational, cultural and sporting 
services (other than audiovisual 
services) - entertainment services 
(including theatre, live bands and circus services) NT/PR I/CBTS 20% minimum participation by  Salvadorans in pub lic performances. 
Maritime transport services NT/LP CBTS Navigation and ca botage trade between the country's ports reserved to 
ships flying the national flag or subject to the same conditions as 
those flying the national flag;  i.e. being registered (ship owner has to 
be a Salvadoran resident), flying the national flag, and with the 
captain, and at least 80% of the crew being Salvadoran.  
Air transport - specialty air services NT/PR I/CBTS Author ization or permit required, a nd granted on the basis of 
economic necessity, reciprocit y and domestic air policy. 
Air transport - supporting services NT/MFN CBTS Validation and recognition of licences, authorization and certificates 
based on reciprocity.  Companies ba sed in the country must operate 
planes with pilots and co-pilots of Salvadoran nationality;  hiring of 
foreigners based on reciprocity.  
Section B 
Professional services - accounting, auditing and bookkeeping services, 
taxation services for companies  NT/PR/SMBD I Any measure with respect to investment in these subsectors. 
Deadline:  2 years from entry into force. 
Construction services - pre-erection work at construction sites, general 
construction work for buildings and civil engineering, installation and 
assembly work, building completion 
and finishing work, specialty construction work NT/PR/SMBD I Any measure with respect to investment in these subsectors. 
Deadline:  2 years from entry into force. 
Road transport services - passenger and freight transportation, rental of 
commercial vehicles with operator, services for buses terminals NT/PR/SMBD I Any measure with respect to investment in these subsectors. 
Deadline:  2 years from entry into force. 
Note: CBTS:  Cross-border trade in services;  I:  Investment;  LP :  Local presence requirements;  MFN:  Restriction to MFN trea tment;  
NT:  National treatment restriction;  SMBD:  Senior manageme nt and Boards of Directors re striction;  PR:  Performance 
requirements. 
Source : Annex I of the Treaty.  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 65 
  
  139. Further to these reservations, El Salvador has r eserved the right to maintain, or adopt new or 
more restrictive, measures as listed in the Annex II and described in Table IV.4.  MFN reservations have been taken for all of them. 
Table IV.4 
Non-conforming measures listed by El Salvador in Annex II 
Sector/Subsector Obligations Mode  Description 
Professional services - legal services;  
accounting, auditing and book-keeping 
services;  taxation services;  
architectural services;  engineering 
services;  integrated engineering services;  urban planning and 
landscape architectural services;  
medical and dental services;  veterinary services;  deliveries and 
related services, nursing services, 
physiotherapeutic and para-medical services;  software implementation 
services (limited to informatics 
professionals);  other business services (limited to customs agents and teachers 
of infant, basic and high schools NT/MFN/LP CBTS Any measure on CBTS in these subsectors. 
Communication services - TV and 
radio broadcast transmission services NT/MFN/LP CBTS For two years from the entr y into force of the Treaty, any measure 
restricting CBTS in network services for the transmission of TV 
signals, independently of the technology used, and for the 
transmission of audio signals.  After that period, measures in place will be subject to Article 10-06(1) disciplines. 
Construction services - pre-erection 
work at construction sites, general 
construction work for buildings and civil engineering, installation and 
assembly work, building completion 
and finishing work, specialty construction work NT/MFN/LP CBTS For two years from the entr y into force of the Treaty, any measure 
restricting CBTS in these subsectors.  After that period, measures in 
place will be subject to Article 10-06(1) disciplines. 
Road transport services - passenger 
and freight transportation, rental of 
commercial vehicles with operator, services for buses terminals NT/MFN/LP CBTS For two years from the entr y into force of the Treaty, any measure 
restricting CBTS in these subsectors.  After that period, measures in 
place will be subject to Article 10-06(1) disciplines. 
Note: CBTS:  Cross-border trade in services;  LP:  Local presence requirements;  MFN:  Restriction to MFN treatment;  NT:  Nati onal 
treatment restriction. 
Source : Annex II of the Treaty. 
3. Guatemala 
140. Guatemala has bound national treatment and ot her obligations, sometimes subject to 
reservations - summarized in Table IV.5 - in vari ous subsectors under the Treaty.  In contrast, under 
the GATS Guatemala has taken national treatment oblig ations, under one or more modes of supply, in 
some 15 subsectors (or segments thereof). 
141. Under Annex I of the Treaty, Guatemala has listed a variety of reservations concerning 
national treatment of foreign investors (natural and juridical persons);  these reservations are not 
included in its GATS schedule and therefore are not  applicable to those fourteen-odd subsectors 
where commitments have been made without rele vant national treatment limitations under mode 3 
(including certain computer and related services;  basic telecommunication services;  certain hotel and 
restaurant services;  aircraft maintenance and repair, and computer reservation system services).  In a 
similar vein, Article 14-09 of the Treaty exempt s subsidies, including government loans and WT/REG212/2/Rev.1 
WT/REG213/2/Rev.1 WT/REG214/2/Rev.1 
Page 66 
  
  guarantees, from national and MFN treatment;  again, Guatemala has not scheduled similar limitations 
or exemptions under the GATS. 
142. The only limitation Guatemala has inscribed in the horizontal section of its GATS schedule, 
applying across all modes, relates to the tax treatment  of various types of income (dividends, bonuses, 
interest, etc.) earned by non-domic iled natural and juridical persons.
50  The schedule specifies the 
relevant tax rates without further explaining the in consistency with the Trea ty's national treatment 
obligation.  Guatemala has not listed similar reservations under the Treaty. 
143. Given that the chapter on financial services does not  apply to Guatemala, the coverage of the 
services sector under the GATS goes beyond that under  the Treaty, though in the former it concerns 
three relatively small segments of the financial services sector. 
144. In the Treaty, all segments of construction services are covered by an MFN exemption which 
extends (preferentially) national treatment in cro ss-border supply within the framework of Central 
American Economic Integration, and which is not extended to Mexico.  Similarly, Guatemala has 
listed various MFN exemptions with regard to freig ht and passenger transport by road, sea, and air.  
Suppliers from other Central American countries are exempt, inter alia , from restrictions on road 
cabotage, and may access Guatemala's sea and airports on a national treatment basis;  again this is, however, not extended to Mexico.  The relevant regi mes have also been included in Guatemala's List 
of Article II Exemptions under the GATS. 
145. Guatemala has reserved the right to restrict supplies from Mexico of certain entertainment 
services through, inter alia , authorization requirements.  The provision of some business services, 
including segments of the legal profession (notaries), and of tourist guide services is governed by nationality and residency requirements. 
146. Other exemptions from core Treaty obligations, including MFN and national treatment relate 
to the recognition of educational degrees, pr ofessional titles, etc. among various groups of 
Central American countries, but are not extended to Mexico.  These measures have also motivated a 
notification submitted by Guatemala under Article VII:4 of the GATS (WTO document S/C/N/105 of 
28 July 1999).  Further reservations relate, inter alia , to the recognition of air pilot licences. 
147. Guatemala is not committed to phasing out any of  the reservations it has listed in Annex I, 
barring one exception - namely foreign equity restrictions on companies providing road freight and passenger transport services, which were eliminated in January 2004.
51 
Table IV.5 
Non-conforming measures liste d by Guatemala in Annex I 
Sector Obligations  Mode Descri ption/Reduction of Restriction 
All NT I Limitation on property rights over land in a given region for foreigners 
and foreign companies. 
All NT I Ownership of real estate re served for Guatemala's nationals;  for 
juridical persons, a majority must be of Guatemalan nationals. 
All NT I Permission by the Executive needed for foreign ownership of property 
for real estate in urban areas and cer tain areas located close to oceans, 
rivers, lakes or water sources. 
                                                      
50 The only additional national treatment limitation is confined to mode 4 (presence of natural persons). 
51 This is supplemented by Article 19(2) of Decree No. 9-98 of the Congress of the Republic, the "Ley 
de Inversión Extranjera".  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 67 
  
  Sector Obligations  Mode Descri ption/Reduction of Restriction 
All NT I Only Guatemalan nationals or companies may own real estate within 
15 km. from the country's borders, w ith the exception of urban goods 
and rights predating 1.3.1956. 
All NT I Right of establishment for foreign companies requires a minimum 
deposit.  
Forestry - wood extraction and related services NT I Exploitation and renovation of forestry resources reserved for natural or 
juridical persons of Guatemala. 
Professional services - notary 
services NT/LP CBTS Exercise of notary services rese rved for Guatemalans, resident in the 
country, and who have obtained the title in the country or have it 
incorporated in accordance with national legislation.  
Professional services NT/LP I/CBTS Foreign companies cannot provide professional services for which a 
legally recognized grade, title or diploma is required.  
Professional services - customs 
agents NT/MFN/LP CBTS Existing preferences for Centra l American countries are not extended to 
Mexico.  Mexican nationals cannot be authorized to become customs 
agents.  Foreign juridical persons can provide customs agent services if domiciled in Guatemala. 
Professional services MFN CBTS Liberal professions open only to those whose title has been granted by 
the University of Guatemala or inco rporated therein, or otherwise has 
its title recognized on the basis of ex isting agreements and reciprocity.  
Professional services MFN/LP CBTS Existing preferences  for the exercise of university professions and 
recognition of diplomas for Central American countries not extended to 
Mexico. 
Construction services  MFN CBTS Existing preferences  for Central American countries not extended to 
Mexico. 
Recreational, cultural and sporting 
services - theatrical producer, 
singer group, band and orchestra 
entertainment services;  services provided by authors, composers, 
sculptors, entertainers and other 
individual artists;  circus, amusement park and similar attraction services NT I/CBTS Hiring of foreign artists re quires advance authorization from the 
Direction of Entertainment.  Preference given to nationals. 
Tourist guide services NT/LP CBTS The guide has to be Guatemalan or a resident. 
Air transport services - pilots of 
passengers airplanes MFN CBTS Recognition of foreign pilot licences based on international rules and 
agreements and reciprocity. 
Road transport services - passenger and freight transportation NT/MFN I/CBTS Foreign investment in passe nger and freight transportation limited to 
49%.  Commercial freight transporta tion on foreign registered vehicles 
not authorized between two points in the national territory.  Preferential 
treatment granted to Central American countries not extended to 
Mexico.  Restrictions on foreign investment reduced on 1.1.2001 and eliminated by 1.1.04. 
Road, maritime and air transport 
services - passenger and freight 
transportation  MFN CBTS Preferences granted to Central American countries not extended to 
Mexico. 
Road transport - freight 
transportation  MFN CBTS Preferences granted to Central American countries not extended to 
Mexico. 
Note: CBTS:  Cross-border trade in services;  I:  Investment;  LP :  Local presence requirements;  MFN:  Restriction to MFN trea tment;  
NT:  National treatment restriction. 
Source : Annex I of the Treaty. 
148. Guatemala's Annex II reservations , described in Table IV.6, grant it the right to not apply the 
Treaty's core obligations (MFN and national treatme nt, absence of residency/ domicile requirements) 
to cross-border supplies of professional services.  A similar exclusion for construction services - limited in duration to two years from the date of the Treaty's entry into force - has since that time been 
overtaken by an equivalent Annex I reservation (paragraph 144 above). WT/REG212/2/Rev.1 
WT/REG213/2/Rev.1 WT/REG214/2/Rev.1 
Page 68 
  
  Table IV.6 
Non-conforming measures liste d by Guatemala in Annex II 
Sector/Subsector Obligations Mode Description 
Professional services NT/MFN/LP CBTS Any measure on CBTS in this subsector. 
Construction services NT/MFN/LP CBTS For two years from  the entry into force of the Treaty, any measure 
restricting CBTS in this subsector.  After that period, measures in place will be subject to Article 10-06(1) disciplines. 
Note: CBTS:  Cross-border trade in services;  LP:  Local presence requirements;  MFN:  Restriction to MFN treatment;  NT:  Nati onal 
treatment restriction. 
Source : Annex II of the Treaty. 
4. Honduras 
149. Honduras' list of Annex I reservations are summa rized in Table IV.7.  It includes several 
reservations in all sectors for existing non-conf orming measures, including national treatment 
limitations with respect to land ownership, access by foreign investors to small-scale industry and 
commerce (both of which are also scheduled under the GATS), and operations of foreign cooperatives.  A local presence requirement exists  for foreign companies wishing to supply services 
cross-border
52 to Honduras, and for those wishing to bid for public procurement.  Finally, a limitation 
to the MFN obligation allows Honduras to grant more favourable treatment with respect to 
cross-border trade with other Central American countries;  this is not extended to Mexico. 
150. Horizontal commitments under the GATS including a ceiling on the number of foreign 
workers in an enterprise, a limitation on forei gn investment on grounds of its impact on local 
economic activity and employment and of its contribution to the training of Honduran personnel in 
their respective areas of expertise, have been lifted under the Treaty. 
151. At the time of negotiation of the Treaty, Honduras' GATS Schedule was limited to 
commitments on only four of the 12 services categories (business services, financial services, tourism and travel-related services and transport services).
53  Thus, its commitments under the Treaty go 
significantly beyond those in the GATS. 
152. However, it shall be noted that some sub sectors in financial services - insurance and 
insurance-related services and banking and other financial services - and in transport services - rental 
services of passenger cars with operator - are cove red under the GATS but temporarily not covered by 
the Treaty. 
153. With respect to telecommunications services (not  covered in the GATS at the time of the 
negotiation of the Treaty), the Treaty's reservations include a limitation to the MFN obligation giving preferences to Guatemala, El Salvador, Nicaragua and Costa Rica concerning regional 
telecommunication systems.  Moreover, several nati onal treatment limitations have been listed in 
telecommunications services, with the purpose of:  (i) preventing foreign governments from directly 
participating in the supply of the service;  (ii)  granting exclusivity to the Empresa Hondureña de 
Telecomunicaciones (HONDUTEL) until 31 December 2005;  (iii) stipulating conditions for a 
joint-venture between HONDUTEL a nd a foreign investor;  and (iv) requiring local presence for 
foreign enterprises wishing to provide cross-border telecommunication services in Honduras.  In 
radio, television and news agency services, fo reigners cannot accede to management positions. 
                                                     
 
52 Cross-border trade is used here in the sense as cribed to this term in Chapter X of the Treaty. 
53 Since that time, basic telecommunications have been added to Honduras' Schedule.  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 69 
  
  Table IV.7 
Non-conforming measures listed by Honduras in Annex I 
Sector Obligations Mode Descri ption/Reduction of Restriction 
All NT I Ownership of land in given regi ons restricted to Hondurans by birth, 
companies formed integrally of Hondurans associates and State 
institutions.  However, foreign ownership of urban real state is permitted for tourism, economic or social development, or public 
interest, provided it is authorized  by the Tourism Secretariat. 
Foreign retirees may be granted usufruct rights for 40 years, subject to extension, if land is used for residence.  Other restrictions may be 
imposed on foreign ownership of  land on urban border areas.  
All LP CBTS A foreign company is authorized  to trade in Honduras if at least one 
representative with juridical power is permanently established in 
Honduras and it has in Honduras a capital commensurate with the 
activity.  
All NT I Small enterprises of trade a nd industry are reserved for Hondurans; 
this does not apply to foreign inve stors naturalized as Hondurans if 
reciprocity applies.  A maxi mum threshold applies to the
investment. 
All NT I Advance authorization required for foreign cooperatives to operate 
in Honduras and granted on the basis of economic and social 
convenience of the cooperative's expansion, no prejudice to other 
existing cooperatives, and reciprocity. 
All LP CBTS Foreign companies may place an  offer for public bids or tenders and 
public competition if they agree to  constitute a mercantile company 
domiciled in Honduras for providing the required service.  
All MFN CBTS Preferences given to Central American countries not extended to 
Mexico. 
Agricultural services  NT I Beneficiaries of land reform must be Hondurans by birth and must 
be natural persons, peasant coopera tives or peasant associations. 
Fishery services NT I/CBTS Commercial fishing activities limited to resident Hondurans and 
juridical persons where at least 51% of the capital is from 
Hondurans.  Only Hondurans by birth can be owners or captains of 
fishing boats.  Fishing in territorial areas is reserved for ships flying the Honduran flag. 
Communication - postal services:  
private message services  NT/MFN/LP I/CBTS Advance licence required. Se rvices of admission, classification and 
delivery of letters are not allowed.   Authorization required for the 
supply of private message services;  natural persons or mercantile companies must be authorized to trade in Honduras.  Permit 
required for the establishment of the main establishment and each 
branch.  Preference given to inve stment by Hondurans by birth; 
investment also authorized if 60%  of the partners are Hondurans by 
birth and their capital represents at least 60% of the investment;  in 
exceptional cases, complementary foreign investment may be authorized.  
Communication - 
telecommunication services, 
excluding programme transmission services  MFN CBTS Preferences given to Central American countries not extended to 
Mexico. 
Communication - telecommunication services  NT CBTS Foreign governments cannot participate directly in the supply of 
public telecommunication services. 
Communication - telecommunication services:  
switch, telex, telephone and 
telegraph services  NT I/CBTS Exclusivity for HONDUTEL un til 24.12.2005, after which it is 
discontinued.  Association with a strategic investor authorized, 
provided it acquires 51% of the capital.  
Communication - 
telecommunication services, 
excluding programme transmission services  NT I Association with a strategic i nvestor authorized, provided it acquires 
51% of the capital.  The new company has to comply with 
requirements to expand teleco mmunication in rural areas. WT/REG212/2/Rev.1 
WT/REG213/2/Rev.1 WT/REG214/2/Rev.1 
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  Sector Obligations Mode Descri ption/Reduction of Restriction 
Communication - 
telecommunication services  LP CBTS Concession/permit/ registration/licence required depending on the 
service being supplied.  For being granted these, foreign companies 
have to be domiciled in Honduras and nominate a legal 
representative also domiciled in Honduras. 
Communication - radio, TV and 
periodical services SMBD I Direction and intellectual, politi cal and administrative orientation of 
these services reserved for Hondurans by birth.  Foreigners cannot 
direct periodic publications, either in written or oral forms. 
Construction and engineering services - all subsectors NT/MFN/LP I/CBTS Various reservations for to  civil, agronomic, mechanical, electrical 
and chemical engineering, and ar chitecture.  Existing preferences 
for Central American countries not extended to Mexico.  Thresholds 
for foreign investment and registration and classification 
requirements.  
Distribution services - representative, distributors and 
agents of national and foreign 
companies NT/LP I/CBTS A concessionary has to be Honduran or a Honduran commercial 
company;  natural persons must constitute themselves as individual 
traders.  A Honduran company requires a minimum of 51% of 
capital on Honduran investment.  
Distribution services - installation an operation of stations and 
deposits of liquid fuels, petroleum 
derivatives  NT/LP I/CBTS Establishment of stations an d deposits subject to authorization. 
Honduran investment in stations must be at least 51% of the total 
investment.  
Educational services - primary, 
secondary and superior education NT/LP/SMBD I/CBTS Directors and supervisors must be Honduran by birth and authorized 
teachers.  Various nationality, aut horization and titular requirements 
for education levels, and subjects being taught. 
Educational services - primary, and secondary education NT/LP CBTS Nationality requirements for teachers.  Existing preferences for 
Central American nationals not extended to Mexico. 
Professional services MFN/LP CBTS Existing preferences  for the exercise of university professions and 
recognition of diplomas for Central American countries not 
extended to Mexico. 
Recreational, cultural and sporting services - musical artists NT/PR I/CBTS Performance by foreign artists requires advance deposit of a 
caution;  simultaneous hiring of the same number of Honduran 
artists, for the same performance;  and advance authorization.  
Recreational, cultural and sporting services - football  NT/MFN/LP CBTS Mexican players are not authorized (only foreigners of 
Central American nationality are authorized).  
Recreational, cultural and sporting 
services - gambling and betting 
services NT/LP CBTS Only Hondurans by birth and Honduran juridical persons may 
request a licence for the supply of such services. 
Professional services - customs 
agents and agencies NT/LP I/CBTS Only Hondurans by birth can be customs agents, the same applies 
for employees that have representation rights.  A customs agency 
must be established in the place where customs operations are 
exercised. 
Business services - storage and warehousing services LP CBTS Requires constitution in Hondur as of a "sociedad anónima" with 
fixed capital and a single objective. 
Business services - investigation 
and security services NT/LP/SMBD I/CBTS Private security services require authorization.  Foreign companies 
have to associate themselves with Honduran companies and the 
manager must be Honduran by birth. 
Water transport - services of maritime cabotage NT/MFN/LP I/CBTS Commercial maritime cabotag e reserved for Honduran ships;  in 
exceptional cases, foreign ships may be authorized, but the 
preference given to Central Amer ican ships is not extended to 
Mexico.  The shipping company must be established in Honduras with a minimum 51% participation by Honduran citizens. 
Air transport services NT/SMBD I Only natural or ju ridical Honduran persons can register airplanes for 
public services transports and other paid services;  exploitation of 
the former follow the same rules.  Honduran companies must have a minimum of 51% participation by  Honduran citizens and effective 
control be exercised by Honduran s.  Public transport between 
two points of the territory is reserved for Hondurans airplanes.  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 71 
  
  Sector Obligations Mode Descri ption/Reduction of Restriction 
Air transport - register of airplanes, 
specialty air services and air 
services technical staff MFN/NT CBTS Only natural or juridical Honduran persons can register airplanes for 
public services transport and other paid services;  exploitation of the 
latter follow the same rules and requires authorization.  Technical 
staff must be Honduran;  foreigners may be authorized in case of 
need but the preference given to Central Americans is not extended to Mexico. 
Railway transport services NT I Private investment restricted to Hondurans.  The managers and the 
auditor of the State company must be Hondurans by birth. 
Road transport services  NT/MFN/LP I/CBTS Services reserved for natural or juridical Honduran persons. 
International public transportati on open to foreign companies, 
subject to the principle of equitable reciprocity.  Permit for 
exploitation of services required, granted only to Hondurans by birth 
and companies having a minimum of 51% participation by 
Honduran citizens. 
Road transport services MFN CBTS Licences or au thorization required, granted on the basis of 
reciprocity. 
Road transport - freight 
transportation  MFN CBTS Preferences granted to Centra l American countries not extended to 
Mexico. 
Note: CBTS:  Cross-border trade in services;  I:  Investment;  LP :  Local presence requirements;  MFN:  Restriction to MFN trea tment;  
NT:  National treatment restriction;  SMBD:  Senior manageme nt and Boards of Directors re striction;  PR:  Performance 
requirements. 
Source : Annex I of the Treaty. 
154. In Annex II, Honduras has reserved its right to ad opt or maintain any type of measures with 
respect to air traffic control services and other supporting services for air transport, for various professional services and for sewage services.  These are summarized in Table IV.8 below. 
Table IV.8 
Non-conforming measures listed by Honduras in Annex II 
Sector/Subsector Obligations Mode Description 
Air transport services - air traffic control services 
and other supporting services for air transport NT/MFN/LP CBTS Any measure on CBTS in these subsectors. 
Communication - postal services NT/MFN/LP CBTS Monopoly by HONDUCOR. 
Energy - electrical energy services NT/MFN/LP CBTS Monopoly on transmission and operation of transmission 
centre. 
Recreational, cultural and sporting services - 
lottery NT/MFN/LP CBTS Monopoly by PANI.  
Business services - professional services MFN/LP CBT S Restrictions based on nationality for recognition of 
professional qualifications  or university degrees. 
Preferential treatment granted to Northern Triangle countries not extended to Mexico.  
Business services - professional services NT/MFN/LP CBTS Reciprocity requirements. 
Business services - market research and public 
opinion polling services, management consulting 
services, services related to management 
consulting  NT/MFN CBTS Reciprocity requirement s.  Different subscription fees 
for foreigners.  Needs tests.  Association with domestic 
companies may be required.  
Business services - architectural services and urban 
planning and landscape architectural services NT/MFN/LP CBTS Reciprocity and other requirements for foreigners. 
Domestic registration required. 
Business services - nurses and paramedical 
services NT/MFN/LP CBTS Foreign graduates need to pass an exam.  Language 
requirements.  Domestic registration required. 
Reciprocity required. 
Business services - economic research and development services  LP CBTS Representation by a domestic company required. 
Table IV.8 (Cont'd)WT/REG212/2/Rev.1 
WT/REG213/2/Rev.1 WT/REG214/2/Rev.1 
Page 72 
  
  Sector/Subsector Obligations Mode Description 
Business services - mechanical, chemical and 
electrical engineering services  MFN CBTS Reciprocity required. 
Business services - civil engineering services  NT/LP CBT S Foreign graduates need to pass an exam.  Domestic 
registration required.  Empl oyment of foreigners by 
domestic companies subject to authorization. 
Business services - engineering services related to 
forestry NT/LP CBTS Domestic registration required.  Residency requirements 
in certain cases.  Foreign companies may be required to 
have a local counterpart. 
Business services - dental services  NT/MFN/LP CBTS Do mestic registration required.  Residency requirements. 
Reciprocity required. 
Business services - accounting and taxation services MFN/LP CBTS Domestic registration and reciprocity required.  Foreign 
companies have to be established in Honduras. 
Business services - accounting and taxation 
services  NT/MFN/LP CBTS Domestic registra tion, reciprocity and residence 
required.  
Business services - research and development 
services in the area of psychology.  LP CBTS Domestic registration and residence required. 
Business services - veterinarian services  NT/MFN/LP CBTS Domestic registration, residence and authorization 
required.  Foreign graduates need to pass an exam. 
Language requirements.  Different subscription fees for foreigners.  
Business services - medical services NT CBTS Nati onality requirements (by birth) for joining central 
management body.  Preferentia l treatment for Northern 
Triangle countries not extended to Mexico.  Domestic registration required.  
Business services - notary services NT CBTS Nationality requirements. 
Business services - news agency services NT/MFN/LP CBTS Nationality requirements for senior positions.  Domestic 
registration, residence and authorization required. 
Nationality requirements (by birth) for joining central management body 
Business services - microbiologists services  NT CBTS Different subscription fees for foreigners.  
Business services - teachers NT/MFN  Authori zation required based on needs test.  Nationality
requirements for teaching certain subjects.  Reciprocity 
requirements. 
Business services - chemical and pharmaceutical services  NT/MFN/LP  Any measure requiring domestic registration.  
Business services - agronomic engineering 
services NT/MFN/LP  Any measure requiring domestic registration.  
Sewage services NT/MFN/LP  Any measure relating to these services.  
Note: CBTS:  Cross-border trade in services;  LP:  Local presence requirements;  MFN:  Restriction to MFN treatment;  NT:  Nati onal 
treatment restriction. 
Source : Annex II of the Treaty. 
E. REGULATORY PROVISIONS ON TRADE IN SERVICES  
1. Domestic regulation 
155. Under Articles 10-12, Parties are to ensure th at any measures adopted or maintained in 
relation to requirements and procedures for obtaini ng permission, authorization and licences do not 
constitute unnecessary barriers to trade in services, as stipulated in GATS Article VI.  To this end, 
each Party shall aim to ensure that such requi rements are (a) based on objective and transparent 
criteria, such as competence and the ability to supp ly the service;  (b) not more burdensome than 
necessary to ensure the quality of the service;  a nd (c) in the case of licensing procedures, not in 
themselves a restriction on the supply of the service.  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 73 
  
  2. Recognition 
156. Chapter X includes an Annex on Professional Services;   its objective is establish the rules that 
Parties are to abide by so as to harmonize their national legislation on mutu al recognition of academic 
titles and degrees for supplying professional services.  Recognition may be unilateral or agreed 
between the Parties. 
157. Parties are encouraged to eliminate, within one  year from the entry into force of the Treaty, 
the requirements of nationality and/or permanent r esidence listed in Annex I to obtain recognition of 
professional qualifications.  If a Party is not in the position to eliminate such conditions with respect to a specific professional sector, the other Party is au thorized to maintain, in the same sector and for 
the same period of time, internal requirements as a countermeasure.  A Committee on Professional 
Services is also established. 
F. S
ECTOR SPECIFIC PROVISIONS ON TRADE IN SERVICES  
1. Telecommunication services 
158. Provisions regulating the telecommunication services sector are contained in Chapter XII, in 
which the Parties recognize the specif icities of the sector and, in particular, its dual role as a distinct 
economic activity and as the means of communicati on for other economic activities (Article 12-02). 
159. The Chapter covers measures adopted or maintain ed by the Parties for (a) supply of public 
telecommunication services;  (b) access to, and use of, public telecommunicatio ns transport networks 
and services;  (c) supply of enhanced or value-adde d services in the other Party's territory or across 
borders;  and (d) standards-relate d measures for the attachment of terminal or other equipment to 
public telecommunications transport networks. 
160. As specified under Article 12-02(3), no provision of this Chapter shall be interpreted to : 
(a) Oblige any Party to authorize a person fro m another Party to establish, construct, 
acquire, lease, operate, or supply telecomm unications transport networks or services; 
(b) oblige any Party – or, that any Party to require a person – to establish, construct, 
acquire, lease, operate or supply telecommuni cations transport networks or services 
not offered to the public generally;  
(c) prevent any Party from prohibiting persons  operating private networks from using 
them to offer telecommunication networks or public service to third persons;  and 
(d) oblige any other Party to require a any pe rson to use its own cable or broadcast 
distribution of radio or television programming infrastructure as a public 
telecommunication network. 
161. Article 12-03 requires each Party to ensure th at any person from another Party has access to, 
and use of, any public telecommunications transport network or service offered within or across the 
borders of that Party, including private leased circui ts, for the conduct of their business, and that such 
access is offered on reasonable and non-discriminat ory terms and conditions, for the supply of a 
service included in its Schedule.  Paragraph 7 of th is Article allows Partie s to impose conditions on 
the supply of telecommunication services which are deemed to be necessary to safeguard the public WT/REG212/2/Rev.1 
WT/REG213/2/Rev.1 WT/REG214/2/Rev.1 
Page 74 
  
  service responsibilities of providers of public teleco mmunications transport networks or services;  or 
protect the technical integrity of public te lecommunications transport networks or services.
54 
162. The conditions for the supply of enhanced or value-added services are set out in 
Article 12-04.  Accordingly, each Party shall ensure  that any procedure for the request of a licence, 
permission, registry or notificati on are carried out in a transparent and non-discriminatory way, within 
a reasonable period of time and with the only objectiv e being to prove the financial reliability of the 
supplier.  Moreover, Member States must refrain from requiring the private supplier to:  offer its own 
service for public use;  justify and register tariffs;  interconnect its network with a specific client or 
network;  or comply with additi onal technical rules or regulations.  The only instance in which a Party 
may require a private service provider to regist er a tariff is when the provider acts in an 
anti-competitive way. 
163. Each Party shall ensure that standards-related measures relating to attachment of terminal or 
other equipment to public telecommunications trans port networks are intended to prevent technical 
damage, interference or malfunctioning of the public service as well as to protect customer security 
and access to the public service (Article 12-05). 
164. The Chapter on telecommunications contains also a discipline on competition.  Under 
Article 12-06 if a Party maintains or designates a monopoly, main supplier or dominant operator to 
supply public telecommunications tran sport networks or services, and it competes - either directly or 
through branches - in the provision of enhanced or value-added services or other telecommunications-related services or goods, the Part y shall ensure that anti-competitive practices
55 
are not used within its territory.  To this end,  each Party may introduce effective measures and rules 
aimed at preventing anti-competitive business practices. 
165. In the application of GATS Article III, the Treaty requires each Party to ensure that all 
relevant information on conditions affecting acc ess to, and use of, public telecommunications 
transport networks and services is made publicly av ailable, including:  tariffs and other terms and 
conditions of service;  specifications of techni cal interfaces with such networks and services;  
information on bodies responsible for the preparati on and adoption of standards affecting such access 
and use;  conditions applying to attachment of te rminal or other equipmen t;  and notifications, 
registration or licensing requirements (Article 12-09). 
V. GENERAL PROVISIONS OF THE TREATY 
1. Transparency 
166. Chapter XVII on Transparency re quires (a) each Party to designate an enquiry point to 
facilitate communication on any matter dealt within th e Treaty;  (b) that laws, regulations, procedures 
and administrative rulings on any matter covered by the Treaty are published as early as possible, or are made available for the Parties and any other inte rested person;  (c) each Party to notify, to the 
extent possible, other Parties of any applied or  draft measure that it considers as possibly, or 
substantially, affecting the interests of the other Pa rties, and to provide, upon request, information on 
                                                     
 
54 Such conditions may include restrictions on resale or shared use of such services;  requirements to 
use specified technical interfaces;  restri ctions on inter-connection of private leased or owned circuits with such 
networks or services or with circuits leased or owned by another service supplier;  or notification, registration 
and licensing. 
55 Such as cross-subsidization, predatory conduct and discriminatory access to public 
telecommunication networks or services.  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 75 
  
  any applied or draft measure;  and (d) Parties to en sure that juridical and administrative proceedings 
exist for the review and correction of acts undertaken in relation to the Treaty. 
167. Article 20-04 (of the "Exceptions" Chapter) mak es clear that nothing in the Treaty obliges a 
Party to disclose information that may prevent compliance with its Constitution or laws on the 
protection of inter alia  the personal sphere;  fina ncial and taxation issues;  bank accounts of individual 
clients;  or that may be contrary to the public interest. 
2. Current payments and capital movements 
168. The Treaty does not include a specific provision regarding payments and capital movements 
for goods.  Article 11-17 deals with transfers in the fi nancial service sector, in particular by providing 
for freedom of transfers relating to investments by investors of one Party in the territory of another 
Party;  exception to that general rule are also in cluded in the Article.  Similar provisions are also 
included in Chapter XIV on "Investment". 
3. Exceptions 
169. Chapter XX lists the Treaty's disciplines on ex ceptions.  General exceptions contained in 
Article XX of the GATT 1994 are incorporated into the Treaty with respect to the relevant goods 
chapters - i.e. Chapters III-IV, VI-IX, and XV;  the same applies to general exceptions in 
Article XIV(a)-(c) of the GATS on services - i.e. Ch apters X, XII, and XV (Articles 20-02 and 20-03, 
respectively).  National security exceptions are spel led out in Article 20-03 of the Treaty;  they are 
essentially the same as those of Article XXI of the GATT 1994 and Article XV of the GATS. 
170. While taxation measures
56 are generally excluded from the coverage of the Treaty 
(Article 20-05(2)), paragraphs 3-5 of Artic le 20-05 regulate some of these, as follows: 
(a) In cases where the Parties have concluded taxation agreements, the Treaty clarifies 
that the provisions of the former prevail; 
(b) national treatment provisions of both the Treaty and the GATT 1994 apply for 
taxation measures; 
(c) the provisions relating to export taxes, duties and charges apply to taxation measures; 
(d) in general, disciplines regarding expropria tion and indemnification apply to taxation 
measures.  Paragraph 5 of Article 20-05 indi cates the steps to be taken regarding the 
settlement of disputes involving expropriation of investments. 
4. Accession 
171. The Treaty remains open for accession by any country or group of countries within the terms 
and conditions agreed between them a nd the Treaty's Commission (Article 21-05). 
172. Any Party may withdraw from the Treaty, with such withdrawal taking effect 180 days after 
communication to the other Parties (Article 21-06). 
                                                      
56 "Taxation measures" are defined as not  including tariffs nor CVM, anti-dumping duties, fees and 
charges connected with import commensu rate to services rendered, nor b onuses received in connection to any 
import-related auctions. WT/REG212/2/Rev.1 
WT/REG213/2/Rev.1 WT/REG214/2/Rev.1 
Page 76 
  
  5. Institutional framework 
173. Chapter XVIII establishes the main  bodies for the administration of the Treaty - namely the 
Administrative Commission and the Administrative Sub-Commission - as well as a Secretariat.  The 
former, comprising Ministers or State Secretaries - is to meet at least once a year, and is in charge of 
inter alia  ensuring compliance with, and correct applicati on of, the Treaty.  The latter, composed of 
Vice-Ministers or Sub-Secretaries of State, meets at least biannually;  it is charged in particular with supervising the work of bodies established unde r the Treaty and follow-up on the Commission's 
decisions and agreements.  The Secretariat esta blished under Article 18-03 is not an independent 
entity but integrated by National Sections in each Party;  its main task will be to assist the 
Commission and the Sub-Commission and the Arbitr al Tribunals established in accordance with the 
Treaty's dispute settlement procedures. 
174. The various Committees and Sub-Committees, cr eated under different provisions of the 
Treaty, are listed in Annex 18-02(2).  A Committee on Trade in Goods, composed of a titular and an 
alternate representative for each Party, is established unde r Article 3-18.  It is to meet at least once a 
year;  further meetings may take place upon request by any Party, in accordance with the provisions 
of paragraphs 4 and 5 of that Article. 
175. National Sections of the Secretariat were established in each Party.
57 
6. Dispute settlement 
176. Chapter XIX on "Dispute Settlement" applies to any dispute between the Parties on matters 
under the Treaty, unless otherwise provided for elsewhere in the Treaty (Article 19-02).  Recourse to 
the dispute settlement mechanism is therefore as follows: 
(a) As established in Annex 19-02, dispute settle ment is not available for nullification or 
impairment with respect to financial ser vices, telecommunications, temporary entry 
of business persons and investment (Chapters XI, XII, XIII and XIV, respectively)58; 
(b) in financial services (Chapter XI), Chapter XIX applies as modified by Article 11-18; 
(c) as for temporary entry for business persons (Chapter XIII), Article 13-07 limits the 
possibility of pursuing a complaint in cases  where no mutually agreed solution was 
reached through consultations; 
(d) while the Treaty provides a dispute settlement  mechanism specifically for investment 
(Chapter XIV, Section B), Article 14-18 make s clear that this is without prejudice to 
the provisions of Chapter XIX.  Article 14-41 and its respective annex lists those 
cases which are not subject to both these dispute settlement mechanisms;  and 
 
                                                      
57 The National Sections are:  (a) Guatemala:  Dir ectorate for Foreign Trade Administration (DACE) of 
the Ministry of the Economy;  (b) Mexico:  Mexican Se ction of the Free Trade Ag reement Secretariat of the 
Ministry of the Economy;  (c) El Salvador:  Directorat e for Trade Agreement Administ ration of the Ministry of 
the Economy;  (d) Honduras:  Direct orate-General for Economic Integration and Trade Policy of the Ministry of 
Industry and Trade. 
58 The Annex specifies that nullification and impairment may be invoked with respect to 
Chapters III-X, XV and XVI.  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 77 
  
  (e) with respect to standards, technical regula tions and conformity assessment procedures 
(Chapter XV), Article 15-18 clarifies that while the dispute settle ment mechanism of 
the Treaty is available for interpretation and application of that Chapter, recourse to 
such procedures cannot be taken simultane ously to the Committee on Standardization 
Measures. 
177. The main features of the dispute settlement mechanism include consultations;  choice of 
forum for the settlement of a dispute (Treaty or WTO)
59;  intervention by the Commission, which may 
resort to good offices, conciliation and mediation;  arbitration by an Arbitral Tribunal (AT) composed 
of three members60;  issuing of a preliminary report to be followed by a final report;  and procedures 
to deal with the implementation of the award.  No review mechanism is provided for.  Time-frames 
are associated with each stage of the procedure;  in cases of peri shable goods, time-frames are reduced 
by half, or even less upon agreement of the Parties concerned .61 
178. In cases where consultations carried under the pr ovisions of Article 19-05 fail, or following 
technical consultations under Articles 5-13 or 15-18, a Party may request a meeting of the 
Commission to address the issue.  The Commission is  to meet within ten days from the request, and 
may decide to request technical advice;  to provide  for good offices, conciliation or mediation;  or to 
formulate recommendations.  In the case of multip le complaints, the Commission may decide to 
group them in a single dispute.  Following the request for intervention by the Commission, a Party may request the establishment of an AT. 
179. The arbitration procedures are presented in Table V.1.  Model rules of procedures are 
contained in Annex 19-10;  these may however be modified upo n agreement by the Parties or by the 
Commission.  In cases where the complaint refers to  nullification or impairment, the mandate of the 
AT shall clearly so specify.  A preliminary report, including draft conclusions, is to be submitted to 
the Parties for comment;  in the absence of unanimity on certain questions, the arbitrators may express 
their opinion in writing (Article 19-13).  The final repor t is elaborated on the basis of a majority view;  
any divergent views are also recorded (Article 19-14) .  The final report is of a binding nature, in cases 
of non-compliance with its conclusions or, if the co mplaint relates to nullification or impairment, in 
cases where no mutually agreed solu tion has been reached between th e Parties concerned, retaliation 
through the suspension of equivalent benefits gran ted under the Treaty is authorized (Article 19-16). 
180. Apart from dispute settlement per se , Articles 19-17 and 19-18, resp ectively, provide for the 
possibility of the Commission to provide a non-binding interpretation or reply to a Party's question on 
the interpretation or application of the Treaty, and encourage Parties to promote and facilitate 
arbitration and other alternative wa ys to settle international trade disputes among private individuals;  
in particular it may request the Parties to establish procedures to ensure the enforcement of arbitration 
pacts and the recognition and execution of arbitration awards. 
                                                     
 
59 Upon election of the complaining Party.  Once a dispute settlement procedure has begun, the parties 
may not request the use of the mechan ism established in the other forums. 
60 The Members are chosen from a roster of arbitr ators.  Each Party nomi nates ten arbitrators;  
five arbitrators of third-parties are nominated jointly by  the four Parties, and one of them will chair the AT.  
Parties may mutually agree to nom inate an arbitrat or who is not included in the existing roster. 
Annex 19-08 contains a code of Code of Conduct applying to persons involved in a dispute settlement 
case. 
61 Time-frames refer to calendar days. WT/REG212/2/Rev.1 
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Page 78 
  
  Table V.1 Synopsis of the Dispute Settlement Provisions under the Treaty 
 
(Art. 1802)  
-
-4)Consultations  
 (Art. 19-05) 
Request for establishment of AT (Art. 19-07) 
Provisional AT report  (Art. 19-13) AT Composition (Art. 19-09:1) 
90 days  
Final AT report (Art. 19-14:1) Referral to Commission (Art. 19-06)  
Meeting of the Commission (within 10 days) 
AT examination  (Art. 19-10-19-12 ) 
Implementation  (Art. 19-15) 
Possibility of retaliation upon 
authorization by AT (Art. 19-16) Recourse to AT by a Party 
(Art. 19-16:4) 
AT determination (Art. 19-16:5) Comments by Parties  (Art19-13:4) 
Timeframe as in award, max. 3 months  
*  30 days after the Commission has met;  if meeting has not been he ld, 30 days after it has been requested;  or, in case of mult iple   
complaints, 30 days after the meeting held to deal with the last complaint filed.  15 days 
60 days from constitution of AT  Technical consultations  
(Art. 5-13, 15-18) 
Good offices, conciliation, mediation  (Art. 19-
06 4(b))Technical advice re quested (Art. 19-06:4 (a)) 
Issue of recommendations (Art. 19-06:4 (c)) 
15 days 
Transmittal to the 
Commission  (Art. 19-14:3) Publication 
(Art. 19-14:4) Max 30 days Max 30 days* Max 30 days  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 79 
  
  181. As at June 2009, a dispute has occurred whic h has been resolved in accordance with the 
dispute settlement mechanism established in Chap ter XIX of the Mexico-Northern Triangle Free 
Trade Treaty.  In this dispute, El Salvador cha llenged the procedures applied by Mexico for granting 
health registration to Salvadoran medicines.  The arbitral panel concluded that the requirement that 
the medicine factory or laboratory be located  on Mexican soil ("plant requirement") was not 
consistent with the principle of national treatment  contained in the Treaty, and Mexico therefore 
eliminated this requirement for medicines from El Salvador in November 2006 (see paragraph 82 
above). 
7. Relationship with other agreements concluded by the Parties 
182. Article 1-01 clarifies that Parties remain bound by the rights and obligations of the 
WTO system;  however, in case of incompatibility between those provisions and that of the Treaty, the provisions of the latter prevails. 
183. Article 21-07 terminates de facto the par tial scope agreements between Mexico and 
El Salvador, Honduras and Guatemala, conclude d under the auspices of the Latin American 
Integration Association (LAIA).
62 
184. Table V.2 below lists RTAs concluded by each Party which are in force as of 
mid-October 2008, irrespective of whether or not they have been notified to the WTO. 
Table V.2 
Mexico, El Salvador, Guatemala, Honduras:  participation in  other RTAs (notified and non-notified, in force), June 2009  
GATT/WTO Notification Partner/Agreement Date of entry 
into force Type of 
agreement Year WTO Provision 
MEXICO  
Japan 01.04.05 Goods & services 2005 GATT Art. XXIV & GATS Art. V 
EFTA 01.07.01 Goods & services 2001 GATT Art. XXIV & GATS Art. V 
EC 01.10.00 Services 2002 GATS Art. V 
EC 01.07.00 Goods 2000 GATT Art. XXIV 
Israel 01.07.00 Goods 2001 GATT Art. XXIV 
Chile 01.08.99 Goods & services 2001 GATT Art. XXIV & GATS Art. V 
Nicaragua 01.07.98 Goods & services 2005 GATT Art. XXIV & GATS Art. V 
Costa Rica 01.01.95 Goods & services 2006 GATT Art. XXIV & GATS Art. V 
NAFTA 01.04.94 Goods & services 1995 GATT Art. XXIV & GATS Art. V 
GSTP 19.04.89 Goods 1989 Enabling clause 
LAIA 18.03.81 Goods 1982 Enabling clause 
PTN 11.02.73 Goods 1971 Enabling clause 
Group of Three (Colombia, Venezuela) 01.01.95* Goods & services Not notified 
Bolivia 01.01.95 Goods & services Not notified 
Uruguay 15.07.04 Goods & services Not notified 
EL SALVADOR  
CAFTA-DR 01.03.06 Goods & services 2006 GATT Art. XXIV & GATS Art. V 
Panama 11.04.03 Goods & services 2005 GATT Art.  XXIV & GATS Art.  V 
Chile 01.06.02 Goods & services 2004 GATT Art.  XXIV & GATS Art.  V 
                                                      
62 A transition period of 30 days from entry into force of the Treaty was however provided for customs 
procedures in general and origin  certificates in particular. WT/REG212/2/Rev.1 
WT/REG213/2/Rev.1 WT/REG214/2/Rev.1 
Page 80 
  
  GATT/WTO Notification Partner/Agreement Date of entry 
into force Type of 
agreement Year WTO Provision 
CACM 12.10.61 Goods 1961 GATT Art. XXIV 
Chinese Taipei  Goods & services Not notified 
Colombia  Goods Not notified 
Venezuela  Goods Not notified 
Dominican Republic  Goods Not notified 
GUATEMALA  
CAFTA-DR 01.07.06 Goods & services 2006 GATT Art. XXIV & GATS Art. V 
CACM 12.10.61 Goods 1961 GATT Art. XXIV 
Chinese Taipei 01.07.06 Goods & services Not notified 
Cuba  Goods Not notified 
Colombia  Goods Not notified 
Venezuela  Goods Not notified 
Panama  Goods Not notified 
Dominican Republic 15.10.01 Goods Not notified 
HONDURAS  
CAFTA-DR 01.04.06 Goods & services 2006 GATT Art. XXIV & GATS Art. V 
CACM 12.10.61 Goods 1961 GATT Art. XXIV 
Chinese Taipei 15.07.08 Goods & services Not notified 
Colombia Not yet in force Goods & services Not notified 
Chile 19.07.08 Goods & services Not notified 
Venezuela 22.09.86 Goods Not notified 
Panama 08.01.09 Goods Not notified 
* Since 19 November 2006, only Mexico and Colombia are members. 
Source : WTO Secretariat. 
EFTA: European Free Trade Area 
CAFTA-DR: Dominican Republic-Central America-United States - in  force for the Dominican Republic, El Salvador, Guatemala, 
 Honduras, Nicaragua and the United States 
GSTP: Global System of Trade Preferences NAFTA: North American Free Trade Agreement 
LAIA: Latin American Integration Association 
PTN: Protocol relating to Trade Ne gotiations among developing countries 
CACM: Central American Common Market 
 
8. Government procurement 
185. Through Article 21-02 and a side letter to the Treaty, the Parties have agreed to start 
negotiations on government pr ocurement within 18 months from the entry into force of the Treaty.  
These negotiations are to be conducted on the basis of a text initialled by the heads of delegation responsible for negotiating the Treaty, on 28 August 1998.  On  24 November 2008, the government 
procurement technical group, made up of representati ves from all four countries, met with a view to 
exchanging information on their respective govern ment procurement systems and modalities and 
establishing a work programme for the start of the negotiations in respect of the chapter on this 
subject.  On 25 November 2008, the heads of administ ration of the FTA agreed that the start of the 
negotiations and the establishment of the group responsible for them would be based on an 
Administrative Commission decision.  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 81 
  
  9. Intellectual property rights 
186. Chapter XVI on Intellectual Property grants nationa l treatment with respect to the acquisition, 
protection and defence of intellectual property rights
63 (IPRs) and specifies that this cannot be 
correlated with compliance by nationals of othe r countries with any formality or condition for 
acquiring copyrights.  Most-favoured nation treat ment is also provided on an immediate and 
unconditional basis, with the exception of advantag es, favour, privilege or immunity granted in 
accordance with Article 4 of the WTO TRIPS Agreement. 
187. Coverage of IPRs is similar to that in the WT O Agreement, i.e. copyright and related rights, 
trademarks, patents, industria l designs, and geographical indi cations;  differences exist vis-à-vis  utility 
models - covered by the Treaty but not in the WTO - and layout designs of integrated circuits, which 
are excluded from the Treaty.  Terms of protection are specified for each of the IPRs protected;  
however, for utility models, the Treaty's only provision states that each Party will protect them "in conformity with its legislation" (Article 16-33). 
188. Enforcement of IPRs is also detailed in the Treat y;  as in the WTO, it provides for judicial, 
administrative and criminal procedures for compla ints regarding IPRs.  The dispute settlement 
procedures of the Treaty may also be used with respect to any matter covered by this Chapter. 
189. Trade in counterfeit goods is addressed through cooperation between the Parties 
(Article 16-07) and the possibility of recourse to ju dicial and administrative procedures regarding the 
enforcement of IPRs.  Under Article 16-07 the Part ies remain free to apply appropriate measures to 
deal with anti-competitive practices and conditions th at unreasonably restrain trade or adversely affect 
the international transfer of technology. 
 
  
                                                     
 
63 Except as provided in the Berne, Rome and Pari s Conventions.  These exceptions may cover judicial 
and administrative proceedings for the protection and defence of intellectua l property rights in accordance with 
Article 16-05. WT/REG212/2/Rev.1 
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Page 82 
  
  ANNEX I 
 
Indicators of trade liberalization under the Treaty
 
 
 1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the duty rates applied by Parties to MFN imports is shown in Tables AI.1 to 4, according 
to agricultural, non-agricultural and total products .  Applied MFN duty rates in 2001 serve as a basis 
for the comparison. 
2. Mexico  has a variable tariff structure.  Its ( unweighted) average MFN rate (2001) was 16.3% 
on all goods, with a higher average tariff applied to agricultural products than to non-agricultural 
goods.  Duty-free tariff lines accounted for only 1.3% of all lines.  As of entry into force in 2001, the Northern Triangle's exporters enjoye d a relative margin of preference vis-à-vis  the prevailing MFN 
tariff on agricultural products of 34.8, 37.4 and 38.8% for respectively El Salvador, Honduras and 
Guatemala, with the corresponding figures for non-ag ricultural products being 94.3% for El Salvador 
and Guatemala and 77.1% for Honduras.  At the en d of the transition period in 2010, the relative 
margin of preference on agricultural products will be between 64.3% and 69.2%, while that on 
non-agricultural products will be 98.7% for all the countries. 
Table AI.1A 
Mexico:  indicators of MFN tariff rates and pr eferential rates for imports from El Salvador 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-
free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2001 16.3 16.5 1.3 22.7 23.4 2.7 15.7 15.9 1.2 
El Salvador 2001 2.2 12.3 81. 9 14.8 23.4 36.1 0.9 6.9 86.6 
 2002 2.0 11.1 81.9 13.8 21.8 36.1 0.8 5.8 86.6 
 2003 1.8 9.8 81.9 12.9 20.3 36.1 0.6 4.7 86.6 
 2004 1.5 9.1 82.9 11.9 21.6 44.5 0.5 3.6 86.9 
 2005 1.3 10.1 86.6 11.1 21.2 46.9 0.3 3.6 90.7 
 2006 1.2 9.2 86.7 10.4 20.3 48.1 0.3 2.8 90.7 
 2007 1.1 17.7 93.8 9.7 19.1 48.6 0.2 12.5 98.4 
 2008 1.0 17.0 94.1 8.8 18.3 52.0 0.2 12.1 98.4 
 2009 0.9 35.6 97.3 8.1 53.7 84.7 0.2 13.2 98.6 
 2010 0.9 38.6 97.5 8.1 59.1 86.1 0.2 14.0 98.7 
a WTO Definition. 
Source : WTO Secretariat estimates based on data provided by Mexico and WTO-IDB. 
Table AI.1B 
Mexico:  indicators of MFN tariff rates and preferential rates for imports from Guatemala 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-
free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2001 16.3 16.5 1.3 22.7 23.4 2.7 15.7 15.9 1.2 
Guatemala 2001 2.1 11.9 82.1 13.9 22.4 37.3 0.9 6.8 86.8 
 2002 1.9 11.0 82.1 13.0 20.9 37.3 0.8 6.1 86.8 
Table AI.1B (Cont'd)   WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 83 
  
  ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-
free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
 2003 1.7 9.7 82.1 12.0 19.3 37.3 0.7 5.0 86.8 
 2004 1.5 9.0 83.2 11.0 21.0 47.2 0.5 4.0 87.1 
 2005 1.3 9.2 85.5 10.2 20.6 49.7 0.4 3.6 89.4 
 2006 1.1 8.1 85.7 9.5 19.8 51.2 0.3 2.6 89.4 
 2007 1.0 17.6 94.1 8.8 18.7 52.0 0.2 13.8 98.6 
 2008 0.9 16.8 94.3 8.2 17.9 53.5 0.2 13.5 98.6 
 2009 0.9 33.3 97.2 7.5 47.1 83.0 0.2 14.8 98.8 
 2010 0.9 36.8 97.5 7.5 53.6 84.9 0.2 15.8 98.9 
a WTO Definition. 
Source : WTO Secretariat estimates based on data provided by Mexico and WTO-IDB. 
Table AI.1C 
Mexico:  indicators of MFN tariff rates a nd preferential rates for imports from Honduras 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2001 16.3 16.5 1.3 22.7 23.4 2.7 15.7 15.9 1.2 
Honduras 2001 4.6 16.7 72.1 14. 2 21.7 34.2 3.6 15.3 76.2 
 2002 4.4 15.9 72.1 13.1 20.1 34.2 3.5 14.8 76.2 
 2003 4.2 15.2 72.1 12.1 18.5 34.2 3.4 14.2 76.2 
 2004 4.0 15.0 73.3 11.1 20.2 44.6 3.2 13.8 76.4 
 2005 3.8 16.0 76.1 10.3 19.5 46.5 3.1 15.1 79.3 
 2006 1.1 8.8 86.9 9.3 19.5 51.7 0.3 3.1 90.7 
 2007 1.0 17.3 94.0 8.6 18.4 52.6 0.2 14.2 98.4 
 2008 0.9 16.7 94.4 7.7 17.7 56.6 0.2 13.9 98.4 
 2009 0.9 33.2 97.3 7.0 51.2 86.0 0.2 15.2 98.6 
 2010 0.8 36.3 97.6 7.0 58.1 87.7 0.2 16.0 98.7 
 
a WTO Definition. 
Source : WTO Secretariat estimates based on data provided by Mexico and WTO-IDB. 
3. El Salvador has a variable tariff structure.  Its (unweighted) average MFN rate (2001) was 
7.4% on all goods, with a higher average tariff applied to agricultural products than to 
non-agricultural goods.  Duty-free tariff lines accounted fo r 47% of all lines.  As of entry into force, 
Mexico's exporters enjoyed a re lative margin of preference vis-à-vis  the prevailing MFN tariff on 
agricultural products of 23.1%, with the corres ponding figure for non-agricultural products being 
25.4%.  At the end of the transition period in 2012,  the relative margin of preference on agricultural 
products will increase to 71.1%, while that on non-agricultural prod ucts will be 95.5%. 
 
     
 WT/REG212/2/Rev.1 
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Page 84 
  
  Table AI.2 
El Salvador:  indicators of MFN tariff rates and preferential rates for imports from Mexico 
ALL PRODUCTS Agricultural productsa Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2001 7.4 14.0 47.0 12.1 15.8 23.6 6.7 13.6 51.1 
Mexico 2001 5.6 12.8 56.0 9. 3 14.4 35.3 5.0 12.4 59.4 
 2002 4.8 11.1 56.3 8.8 13.6 35.3 4.2 10.4 59.8 
 2003 4.0 9.2 56.4 8.2 12.6 35.3 3.3 8.3 59.8 
 2004 3.2 7.4 56.4 7.5 11.6 35.3 2.5 6.2 59.8 
 2005 2.4 7.9 69.4 6.8 10.7 36.1 1.7 6.6 75.0 
 2006 2.0 6.4 69.5 6.2 9.7 36.1 1.2 4.9 75.1 
 2007 1.5 6.3 76.5 5.5 10.3 46.8 0.8 4.3 81.5 
 2008 1.2 5.8 78.5 5.0 9.4 46.8 0.6 3.7 83.9 
 2009 1.0 4.8 78.5 4.5 8.5 46.8 0.4 2.7 83.9 
 2010 0.8 8.6 90.5 4.0 7.7 47.6 0.3 12.8 97.9 
 2011 0.7 17.3 95.7 3.5 17.5 79.7 0.3 17.0 98.5 
 2012 0.7 19.6 96.3 3.5 21.0 83.4 0.3 17.0 98.5 
a WTO Definition. 
Source : WTO Secretariat estimates based on data provided by El Salvador. 
4. Guatemala has a variable tariff structure.  Its (unweighted) average MFN rate (2001) was 
7.6% on all goods, with a higher average tariff applied to agricultural products than to non-agricultural goods.  Duty-free tariff lines accounted for 46.7% of all lines.  As of entry into force, 
Mexico's exporters enjoyed a re lative margin of preference vis-à-vis  the prevailing MFN tariff on 
agricultural products of 19.2%, with the correspondi ng figure for non-agricultural products being of 
23.9%.  At the end of the transition period in 2012,  the relative margin of preference on agricultural 
products will increase to 74%, while that on non- agricultural products will be of 95.8%. 
Table AI.3 
Guatemala:  indicators of MFN tariff rates a nd preferential rates for imports from Mexico 
ALL PRODUCTS Agricultural productsa Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2001 7.6 14.2 46.7 10.4 13.5 23.5 7.1 14.5 50.7 
Mexico 2001 5.9 13.1 55.1 8. 4 13.2 36.2 5.4 13.1 58.4 
 2002 5.0 11.2 55.3 7.8 12.4 37.0 4.5 10.9 58.4 
 2003 4.1 9.3 55.8 7.2 11.5 37.2 3.6 8.7 59.1 
 2004 3.2 7.3 55.9 6.5 10.4 37.2 2.6 6.4 59.2 
 2005 2.3 7.5 69.2 5.9 9.5 38.5 1.7 6.7 74.6 
 2006 1.9 6.1 69.3 5.2 8.5 38.5 1.3 5.0 74.7 
 2007 1.4 5.9 76.6 4.5 9.3 51.5 0.8 4.4 81.0 
 2008 1.1 5.2 78.1 4.1 8.4 51.5 0.6 3.6 82.8 
Table AI.3 (Cont'd)   WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 85 
  
  ALL PRODUCTS Agricultural productsa Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
 2009 0.9 4.2 78.1 3.7 7.6 51.7 0.4 2.6 82.8 
 2010 0.7 7.6 90.7 3.2 6.8 52.6 0.3 10.1 97.4 
 2011 0.6 13.6 95.3 2.8 14.4 80.7 0.3 12.8 98.0 
 2012 0.6 15.1 95.8 2.7 17.3 84.3 0.3 12.8 98.0 
a WTO Definition. 
Source : WTO Secretariat estimates based on data provided by Guatemala and WTO-IDB. 
5. Honduras has a variable tariff structure.  Its (unw eighted) average MFN rate (2001) was 7.5% 
on all goods, with a higher average tariff applied to agricultural products than to non-agricultural 
goods.  In 2001, none of the MFN tariff lines was dut y-free.  As of entry into force, Mexico's 
exporters enjoyed a relative margin of preference vis-à-vis  the prevailing MFN tariff on agricultural 
products of 20.4%, with the corresponding figure for non-agricultural products being of 24.6%.  At 
the end of the transition period in 2012, the relativ e margin of preference on agricultural products will 
increase to 72.2%, while that on non-agri cultural products will be of 91.3%. 
Table AI.4 
Honduras:  indicators of MFN ta riff rates and preferential ra tes for imports from Mexico 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2001 7.5 7.5 0.0 10.8 10.8 0.0 6.9 6.9 0.0 
Mexico 2001 5.7 12.4 54.5 8. 6 12.6 31.9 5.2 12.4 58.3 
 2002 5.3 11.7 54.5 8.1 11.8 31.9 4.9 11.7 58.4 
 2003 5.0 11.0 54.6 7.4 10.9 32.1 4.6 11.0 58.4 
 2004 4.6 10.2 54.6 6.8 10.0 32.1 4.3 10.2 58.4 
 2005 4.3 10.6 59.9 6.1 9.2 33.4 3.9 11.1 64.5 
 2006 2.2 7.2 69.3 5.4 8.5 36.1 1.6 6.6 75.0 
 2007 1.8 6.1 70.3 4.8 8.1 41.0 1.3 5.3 75.4 
 2008 1.5 6.5 77.8 4.4 8.5 48.8 1.0 5.5 82.7 
 2009 1.3 5.6 77.8 3.9 7.7 48.8 0.8 4.6 82.7 
 2010 1.1 9.6 89.0 3.5 7.0 50.4 0.6 14.5 95.7 
 2011 1.0 11.1 91.1 3.1 8.6 64.2 0.6 14.8 95.8 
 2012 1.0 16.6 94.1 3.0 17.4 82.6 0.6 16.0 96.1 
a WTO Definition. 
Source : WTO Secretariat estimates  based on data provided by Honduras and WTO-IDB. 
6. Table AI.5A shows the market access opportunities in Mexico for El Salvador's top 
25 exports, which in 1998-2000 accounted on average for 55.1% of El Salvador's  global exports.  The 
table shows the year in which all HS 8-digit tariff lines corresponding to the product definition 
(i.e. applying to the 6-digit HS code used to cap ture the volume of trade) will become duty-free in 
Mexico. WT/REG212/2/Rev.1 
WT/REG213/2/Rev.1 WT/REG214/2/Rev.1 
Page 86 
  
  7. El Salvador's top 25 exports cover a total of  105 HS 8-digit tariff lines in Mexico's tariff 
schedule.  Two of El Salvador's top 25 exports (which account for 20 HS 8-digit lines and 3.2% of 
El Salvador's average global exports in the period 1998-2000) already benefited from zero 
MFN duties in Mexico's market, 13 products (re presenting 54 lines and accounting for 16.5% of 
El Salvador's average global exports) gains i mmediate duty-free access, including its top second 
export product.  The most important export product will remain dutiable;  by 2009, the third product 
of export interest to El Salvador will have duty-free access.  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 87 
  
  Table AI.5A - Mexico:  market access opportunities under the Treaty for El Salvador's top 25 exports 
Access conditions to Mexico's import markets 
MFN (2001) El Salvador's top export products in 
1998-2000 Number 
of tariff 
lines Duty-free in 
HS number Share in 
global 
exports 
(%) Avg. MFN 
applied rate
(%) 
Duty-free 
Dutiable 
2001 2004 
2005 
2007 
2008 
2009 
Remain dutiable 
090111 Not decaffeinated 23.0 23.0  1       1 
271000 Petroleum oils and oils obtained from 
bituminous minerals, other than 
crude;  preparations not elsewhere 
specified or included, containing by weight 70% or more of petroleum oils 
or of oils obtained from bituminous 
minerals 4.2 10.0  11 11       
170111 Cane sugar 3.7 0.39586$/kg.  2     2   
210690 Other 2.5 16.7  12     1 11  
300490 Other 2.3 8.0 17 21 21       
030613 Shrimps and prawns 1.9 30.0  1  1      
630260 Toilet linen and kitchen linen, of terry 
towelling or similar terry fabrics, of 
cotton 1.6 35.0  1 1       
340119 Other 1.2 20.0  1 1       
220210 Waters, including mineral waters and 
aerated waters, containing added 
sugar or other sweetening matter or flavoured 1.2 20.0  1     1   
481910 Cartons, boxes and cases, of 
corrugated paper or paperboard 1.2 13.0  1 1       
190410 Prepared foods obtained by the 
swelling or roasting of cereals or 
cereal products 1.1 10.0  1  1      
170490 Other 1.1 20.0  1  1      
340220 Preparations put up for retail sale 1.0 16.6  7 7       
760720 Backed 1.0 15.5  2 1  1     
481810 Toilet paper 0.9 20.0  1 1       
610910 Of cotton 0.9 35.0  1 1       
300420 Containing other antibiotics 0.9 5.0 3 1 1       
841821 Compression-type 0.8 23.0  1    1    
854459 Other 0.8 17.2  6   6     
330610 Dentifrices 0.7 25.0  1   1     
760429 Other 0.7 16.3  3    3    
520512 Measuring less than 714.29 decitex 
but not less than 232.56 decitex 
(exceeding 14 metric number but not exceeding 43 metric number) 0.7 18.0  1 1       
380810 Insecticides 0.6 3.0  3 3       
481920 Folding cartons, boxes and cases, of 
non-corrugated paper or paperboard 0.6 13.0  2 2       
340290 Other 0.6 10.5  2 2       
Total of above 55.1  20 85 54 3 8 4 4 11 1 
Source : WTO estimates based on data provided by Mexi co, WTO-IDB and the UNSD Comtrade database. WT/REG212/2/Rev.1 
WT/REG213/2/Rev.1 WT/REG214/2/Rev.1 
Page 88 
  
  8. Table AI.5B shows market access opportunities in Me xico for Guatemala's top 25 exports;  in 
1998-2000 these accounted for 63.4% of Guatemala' s global exports.  Guatemala's top 25 exports 
expressed at the HS 6-digit level, cover a total of 76 lines at the HS 8-digit level;  of these, 21 are 
duty-free on an MFN basis, while 55 lines are subject to duty.  At the date of entry into force of the 
Treaty, 33 of the 55 lines became duty-free for imports from Guatemala;  by the end of the implementation period in 2010, a further 13 lines will become duty-free while nine lines will remain 
dutiable for imports from Guatemala. 
Table AI.5B - Mexico:  Market ac cess opportunities under the Treaty for Guatemala's top 25 exports 
Access conditions to Mexico's import markets  
MFN (2001)  Guatemala's top export products in 1998-2000  
Number of 
tariff lines  Duty-free in  
HS number  Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) 
Duty-free 
Dutiable 
2001 
2004 
2005 2009 
2010 
Remain dutiable 
090111 Not decaffeinated 22.3 23.00  1      1 
170111 Cane sugar 9.1   2      2 
080300 Bananas, including plantains, fr esh or dried 6.7 23.00  1      1 
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude 3.9 13.00  1      1 
090830 Cardamoms 2.2 23.00  1 1      
300490 Other 2.1 8.03 17 21 21      
210410 Soups and broths and preparati ons thereof 1.6 13.00  1     1  
080719 Other 1.4 23.00  2    2   
340600 Candles, tapers and the like 1.3 30.00  1 1      
240120 Tobacco, partly or wholly stemmed/stripped 1.3 52.33  3    3   
701091 Exceeding 1 l 1.1 18.00  1   1    
190410 Prepared foods obtained by the swelling or 
roasting of cereals or cereal products 1.1 10.00  1    1   
340111 For toilet use (including medicated 
products) 1.0 20.00  1 1      
380830 Herbicides, anti-sprouting products and 
plant-growth regulators 0.9 3.00  4 4      
030613 Shrimps and prawns 0.9 30.00  1  1     
721041 Corrugated 0.9 15.50  2      2 
070410 Cauliflowers and headed broccoli 0.8 13.00  3  3     
481910 Cartons, boxes and cases, of corrugated 
paper or paperboard 0.7 13.00  1 1      
120740 Sesame seeds 0.7 0.00 1        
330610 Dentifrices 0.7 25.00  1   1    
400110 Natural rubber latex, whether or not 
pre-vulcanised 0.6 3.00  1 1      
730630 Other, welded, of circular cross-section, of 
iron or non-alloy steel 0.6 18.00  2      2 
521213 Dyed 0.6 18.00  1 1      
300420 Containing other antibiotics 0.5 5.00 3 1 1      
340119 Other 0.5 20.00  1 1      
Total of above  63.4  21 55 33 4 2 6 1 9 
Source : WTO estimates based on data provided by Mexi co, WTO-IDB and the UNS D Comtrade database.  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 89 
  
  9. Table AI.5C shows market access opportunities in Mexico for the top 25 imports from 
Honduras.  In 1998-2000 these accounted for 68.4%  of Honduras' global exports.  Honduras' top 
25 exports expressed at the HS 6-digit level, cover a total of 49 tariffs, all of which are subject to duty 
on an MFN basis.  At the entry into force of th e Treaty, five of these 49 lines became duty-free for 
imports from Honduras;  by 2009 an additional 29 lin es were duty-free.  The remaining 15 lines are to 
remain subject to duty once th e Treaty is fully implemented. 
Table AI.5C - Mexico:  Market access opportunities under the Trea ty for Honduras' top 25 exports 
Access conditions to Mexico's import markets Honduras' top export products in 1998-2000 
MFN (2001) Duty-free in 
HS number Share in 
global 
exports 
 (%) Average 
MFN 
applied 
rate 
(%) Number 
of 
dutiable 
tariff lines
2001 
2004 
2005 
2006 2007 
2008 
2009 
Remain dutiable 
090111 Not decaffeinated 12.3 23.0 1        1 
090190 Other 10.6 72.0 2        2 
080300 Bananas, including plantains, fres h or dried 9.8 23.0 1        1 
030613 Shrimps and prawns 8.4 30.0 1  1       
080719 Other 4.4 23.0 2       2  
340111 For toilet use (including medicated 
products) 1.9 20.0 1 1        
030611 Rock lobster and other sea crawfish 
(palinurus spp., panulirus spp., jasus spp.) 1.9 30.0 1  1       
790390 Other 1.8 13.0 1 1        
080430 Pineapples 1.7 23.0 1  1       
151110 Crude oil 1.6 10.0 1       1  
440710 Coniferous 1.6 15.5 4     4    
080119 Other 1.3 23.0 1  1       
340120 Soap in other forms 1.3 20.0 1 1        
170310 Cane molasses 1.3 10.0 2      2   
170111 Cane sugar 1.1 0.39586$/k
g. 2      2   
441700 Tools, tool bodies, tool handles, broom or 
brush bodies and handles, of wood;  boot or 
shoe lasts and trees, of wood 1.0 20.5 2     2    
151190 Other 0.9 20.0 1      1   
080711 Watermelons 0.8 23.0 1 1        
940360 Other wooden furniture 0.8 23.7 3   3      
071332 Small red (adzuki) beans (phaseolus or 
vigna angularis) 0.7 13.0 1       1  
441300 Densified wood, in blocks, plates, strips or 
profile shapes 0.7 18.0 3     3    
210320 Tomato ketchup and other tomato sauces 0.7 23.0 2    2     
320990 Other 0.6 15.5 2     2    
790111 Containing by weight 99.99% or more of 
zinc 0.6 13.0 1 1        
Table AI.5C (Cont'd)WT/REG212/2/Rev.1 
WT/REG213/2/Rev.1 WT/REG214/2/Rev.1 
Page 90 
  
  Access conditions to Mexico's import markets Honduras' top export products in 1998-2000 
MFN (2001) Duty-free in 
HS number Share in 
global 
exports 
 (%) Average 
MFN 
applied 
rate 
(%) Number 
of 
dutiable 
tariff lines
2001 
2004 
2005 
2006 2007 
2008 
2009 
Remain dutiable 
271000 Petroleum oils and oils obtained from 
bituminous minerals, other than crude;  
preparations not elsewhere specified or 
included, containing by weight 70% or 
more of petroleum oils or of oils obtained from bituminous minerals 0.6 10.0 11        11 
Total of above 68.4  49 5 4 3 2 11 5 4 15 
Source : WTO estimates based on data provided by Mexi co, WTO-IDB and the UNSD Comtrade database. 
10. The market access opportunities fo r Mexico's top 25 exports to El Salvador, Guatemala and 
Honduras are shown, respectively, in Tables AI.6, AI.7 and AI.8. 
11. Market access opportunities for Mexico's t op 25 exports in El Salvador in 1998-2000 
accounted for 80.8% of its global exports.  Mexico's top 25 exports expressed at the HS 6-digit level, 
cover a total of 53 tariff lines at the HS 8-digit le vel, of which 11 lines were already duty-free on an 
MFN basis in 2001.  Of the 42 lines subject to duty, th e majority will be liberalized towards the end of 
the implementation period, with 17 tariff lines to be liberalized in 2010;  two out of the 42 tariff lines are to remain dutiable after the Treaty is implemented by 2012. 
Table AI.6 - El Salvador:  Market access opportuni ties under the Treaty for Mexico's top 25 exports 
Access conditions to El Salvador's import markets 
MFN (2001) Mexico's top export  products in 1998-2000 
Number of 
tariff lines Duty-free in 
HS number Share in 
global exports
(%) Avg. 
MFN 
applied 
rate 
(%) 
Duty-
free 
Dutiable 
2001 
2002 
2005 
2007 
2008 
2010 
2011 
Remain dutiable 
392190 Other 15.5 7.5  8      8   
481139 Other 14.0 5.0 1 2     2    
410121 Whole 7.1 0.0 1          
820140 Axes, bill hooks and similar 
hewing tools 6.0 10.0 1 2   2      
340119 Other 4.6 15.0  1     1    
300490 Other 4.1 5.0  6  6       
481940 Other sacks and bags, including 
cones 3.7 10.0  1     1    
551321 Of polyester staple fibres, plain 
weave 3.6 20.0  1   1      
630260 Toilet linen and kitchen linen, of 
terry towelling or similar terry 
fabrics, of cotton 3.2 25.0  1 1        
220710 Undenatured ethyl alcohol of an 
alcoholic strength by volume of 
80% vol. or higher 3.1 40.0  2        2 
392020 Of polymers of propylene 2.0 5.0 2 4      4   
Table AI.6 (Cont'd) WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 91 
  
  Access conditions to El Salvador's import markets 
MFN (2001) Mexico's top export  products in 1998-2000 
Number of 
tariff lines Duty-free in 
HS number Share in 
global exports
(%) Avg. 
MFN 
applied 
rate 
(%) 
Duty-
free 
Dutiable 
2001 
2002 
2005 
2007 
2008 
2010 
2011 
Remain dutiable 
551311 Of polyester staple fibres, plain 
weave 1.6 20.0  1   1      
630510 Of jute or of other textile bast 
fibres of heading no. 53.03 1.4 25.0  1    1     
030613 Shrimps and prawns 1.1 10.0  3    3     
490199 Other 1.1 0.0 1          
030530 Fish fillets, dried, salted or in 
brine, but not smoked 1.1 15.0  1    1     
010511 Fowls of the species gallus 
domesticus 1.0 0.0 1          
520832 Plain weave, weighing more than 
100 g/m2 1.0 20.0  1   1      
521031 Plain weave 1.0 20.0  1   1      
761090 Other 0.8 15.0  1      1   
842959 Other 0.8 0.0 1          
392010 Of polymers of ethylene 0.8 5.0 2 3      3   
294190 Other 0.8 0.0 1          
080132 Shelled 0.7 15.0  1       1  
950800 Roundabouts, swings, shooting 
galleries and other fairground 
amusements;  travelling circuses, 
travelling menageries and travelling theatres 0.7 15.0  1      1   
Total of above 80.8  11 42 1 6 6 5 4 17 1 2 
Source : WTO estimates based on data provided by El Salvador and the UNSD Comtrade database. 
12. Market access opportunities for Mexico's top 25 exports in Guatemala in 1998-2000 
accounted for 43.2% of its global exports.  These top 25 export products expressed at the HS 6-digit 
level, cover a total of 49 tariff lines at the HS 8-di git level.  Of these, 14 were already duty-free in 
2001 on an MFN basis while 35 were subject to duty.  As a result of implementation of the Treaty, 16 
lines are to be liberalized while 19 lines will continue  to be subject to duty for imports from Mexico 
after the implementation period is completed. 
Table AI.7 - Guatemala:  Market access opportuni ties under the Treaty for Mexico's top 25 exports 
Access conditions to Guatemala's import markets  
MFN (2001)  Mexico's top export  products in 1998-2000  
Number of 
tariff lines  Duty-free in  
HS number  Share in 
global exports
(%) Average 
MFN 
applied 
rate 
(%) 
Duty-
free 
Dutiable 
2001 
2005 
2007 2010 
Remain dutiable 
270900 Petroleum oils and oils obtained from bituminous 
minerals, crude 7.2 0.00 2       
870323 Of a cylinder capacity exceeding 1,500 cc. but not 
exceeding 3,000 cc. 6.4 15.00  6     6 
Table AI.7 (Cont'd)WT/REG212/2/Rev.1 
WT/REG213/2/Rev.1 WT/REG214/2/Rev.1 
Page 92 
  
  Access conditions to Guatemala's import markets  
MFN (2001)  Mexico's top export  products in 1998-2000  
Number of 
tariff lines  Duty-free in  
HS number  Share in 
global exports
(%) Average 
MFN 
applied 
rate 
(%) 
Duty-
free 
Dutiable 
2001 
2005 
2007 2010 
Remain dutiable 
852812 Colour 3.8 12.50  2    2  
870324 Of a cylinder capacity exceeding 3,000 cc. 2.6 15.00  6     6 
854430 Ignition wiring sets and other wiring sets of a kind 
used in vehicles, aircraft or ships 2.4 5.00  1  1    
847330 Parts and accessories of  the machines of heading 
No. 84.71 2.1 0.00 1       
847160 Input or output units, whether or not containing 
storage units in the same housing 1.9 0.00 1       
870431 G.v.w. not exceeding 5 tonnes 1.9 8.75  4     4 
840734 Of a cylinder capacity exceeding 1,000 cc. 1.4 0.00 1       
847130 Portable digital automatic data processing 
machines, weighing not more than 10 kg., 
consisting of at least a central processing unit, a keyboard and a display 1.2 0.00 1       
852990 Other 1.1 7.50 1 1    1  
870829 Other 1.1 10.00  1 1     
852520 Transmission apparatu s incorporating reception 
apparatus 1.0 0.00 1       
620342 Of cotton 1.0 26.00  1   1   
940190 Parts 0.9 5.00  1    1  
852721 Combined with sound recording or reproducing 
apparatus 0.9 12.50  2    2  
620462 Of cotton 0.9 26.00  1   1   
853690 Other apparatus 0.8 0.00 1       
854441 Fitted with connector s 0.8 15.00  1    1  
870421 G.v.w. not exceeding 5 tonnes 0.8 8.33  3     3 
870899 Other 0.7 10.00  1 1     
850440 Static converters 0.6 0.00 1       
610910 Of cotton 0.6 26.00  1   1   
853650 Other switches 0.6 5.00 3 3  3    
852790 Other apparatus 0.6 0.00 1       
Total of above 43.2  14 35 2 4 3 7 19 
Source : WTO estimates based on data pr ovided by Guatemala, WTO-IDB a nd the UNSD Comtrade database. 
13. Market access opportunities for Mexico's top 25 exports in the Honduras market in 
1998-2000 accounted for 64.2% of its total exports.  These top 25 export products expressed at the 
HS 6-digit level, cover a total of 59 tariff lines at th e HS 8-digit level, all of which were subject to 
duty in 2001 on an MFN basis.  As a result of implementation of the Treaty, 19 lines will be 
liberalized at entry into force;  at the end of th e transition period in 2012, 58 out of 59 of these tariff 
lines will be fully liberalized for imports from Me xico with one line remaining subject to duty.  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 93 
  
  Table AI.8 - Honduras:  Market access opportunities under the Trea ty for Mexico's top 25 exports 
Access conditions to Honduras' import markets Mexico's top export  products in 1998-2000 
MFN (2001)  Duty-free in  
HS number and description of the 
product Share in global 
exports 
(%) Average 
MFN 
applied rate
(%) Number of 
dutiable 
tariff lines 
2001 
2005 2006 
2008 
2010 2012 
Remain 
dutiable  
392190 Other 15.5 7.5 8     8   
820140 Axes, bill hooks and similar 
hewing tools 6.0 10.3 3 1 2      
340119 Other 4.6 15.0 1    1    
300490 Other 4.1 1.0 6 6       
481940 Other sacks and bags, 
including cones 3.7 10.0 1    1    
551321 Of polyester staple fibres, 
plain weave 3.6 20.0 1   1     
630260 Toilet linen and kitchen 
linen, of terry towelling or 
similar terry fabrics, of cotton 3.2 20.0 1   1     
220710 Undenatured ethyl alcohol 
of an alcoholic strength by 
volume of 80% vol. or higher 3.1 17.5 2       2 
481190 Other paper, paperboard, 
cellulose wadding and webs 
of cellulose fibres 3.0 9.3 6 2   4    
392020 Of polymers of propylene  2.0 5.3 6 2    4   
551311 Of polyester staple fibres, 
plain weave 1.6 20.0 1   1     
481110 Tarred, bituminised or 
asphalted paper and 
paperboard 1.6 7.8 4 1 1  2    
630510 Of jute or of other textile 
bast fibres of heading 
No. 53.03 1.4 20.0 1    1    
030613 Shrimps and prawns 1.1 10.0 3  3      
490199 Other 1.1 1.0 1 1       
030530 Fish fillets, dried, salted or 
in brine, but not smoked 1.1 15.0 1    1    
010511 Fowls of the species gallus 
domesticus 1.0 1.0 1 1       
520832 Plain weave, weighing 
more than 100 g./m2 1.0 20.0 1   1     
521031 Plain weave 1.0 20.0 1   1     
761090 Other 0.8 15.0 1     1   
842959 Other 0.8 1.0 1 1       
392010 Of polymers of ethylene 0.8 5.4 5 2    3   
294190 Other 0.8 1.0 1 1       
080132 Shelled 0.7 15.0 1      1  
847989 Other 0.7 1.0 1 1       
Total of above 64.2  59 19 6 5 10 16 1 2 
Source : WTO estimates based on data provided by Hond uras, WTO-IDB and the UNSD Comtrade database. 
 WT/REG212/2/Rev.1 
WT/REG213/2/Rev.1 WT/REG214/2/Rev.1 
Page 94 
  
  ANNEX II 
 
 
Table AII.1 
Products in Annex 3-03 and 3-09 for wh ich import restrictions are allowed 
HS Category in TEP Comments 
El Salvador    
4012, 87, 6309 and 6310, 
6305.10  Import prohibitions or restrictions on used goods 
Guatemala    
0207  Import price requirements 
6309, 8701, 8702, 8703, 
8704, 8705, 8709, 8711  Import price requirements on used goods 
Honduras    
4012, 87, 6309, 6310, 
6305.10  Import prohibitions or restrictions on used goods 
8418, 8450, 8451, 8516.60.00  Im port prohibitions or restrictions on electrical households within this position 
Mexico    
2707, 2709, 2710, 2711, 
2712, 2713, 2714, 2901.10, 
6309 and 6310   
8407.34  Import prohibitions or restrictions on  used goods;  for new goods, exception applies 
only up to 1 January 2006 
8413.11, 8413.40, 8426.12, 
8426.19, 8426.30, 8426.41, 
8426.49, 8426.91, 8426.99, 8427.10, 8427.20  Import prohibitions or restrictions on used goods 
8428.40, 8428.90, 8429.11, 
8429.19, 8429.20, 8429.30, 
8429.40, 8429.51, 8429.52, 8429.59, 8430.31, 8430.39, 8430.41, 8430.49, 8430.50, 
8430.61, 8430.62, 8430.69, 
8452.10, 8452.21, 8452.29, 8452.90, 8471.10, 8471.20, 
8471.91, 8471.92, 8471.93, 
8471.99, 8474.20, 8474.39, 8474.80, 8475.10, 8477.10  Import prohibitions or restrictions on used goods 
8701.20  Import prohibitions or restrictions on  used goods;  for new goods, exception applies 
only up to 1 January 2006 
8701.30, 8701.90  Import prohibitions or restrictions on used goods 
8702, 8703, 8704, 8705.20, 
8705.40, 8706  Import prohibitions or restrictions on used goods;  for new goods, exception applies 
only up to 1 January 2006 
8711.10, 8711.20, 8711.30, 
8711.40, 8711.90, 8712.00, 
8716.10, 8716.31, 8716.39  Import prohibitions or restrictions on used goods 
8716.40, 8716.80  Import prohibitions or restrictions on used goods 
Goods covered by the Decree 
on the Promotion and 
Modernization of the 
Automotive Industry  Import prohibitions or restrictions on used goods;  for new goods, exception applies 
only up to 1 January 2006 
  WT/REG212/2/Rev.1 
 WT/REG213/2/Rev.1 
 WT/REG214/2/Rev.1 
 Page 95 
  
  Table AII.2 
Levels of temporary flexibility under Annex 3-19 
Limitationsa Country 
granting the 
flexibility Beneficiary Product Beneficiary 
Country Per year Expiry date 
Guatemala US$7.5 million 14.3.05 Yarns and fabrics of HS Chapters 52, 54-56, 
58-60 El Salvador US$2.5 million 14.3.05 
Guatemala US$500,000 14.3.05 HS 6110.30, 61.15, 6302.53 
El Salvador US$500,000 14.3.05 
Fabric in HS 5512.11, 5512.19, 
5513.11-5513.13, 5513.21-5513.23, 
5513.31-5513.33, 5513.41-5513.43, 
5514.11-5514.13, 5514.21-5514.23, 
5514.31-5514.33, 5514.41-5514.43, 
5515.11-5515.13, 5515.19, 6001.10, 6001.22, 6001.92, 6003.30, 6005.31-6005.34, 
6006.31-6006.34, using non- originating material 
under HS 55.03 Honduras
b 1.4 million m2 
(possibility of 
increase foreseen) 21.2.10 
Fabric in HS 55.16, 60.02, 60.04, 6001.22, 
6001.92, 6003.40, 6005.41-6005.44, 
6006.41-6006.44, using non- originating material 
under HS 55.04 or 55.07 Hondurasb 2.2 million m2 21.2.10 
Fabric in HS 55.12-55.16, 60.02, 60.04, 
6001.10, 6001.22, 6001.92, 6003.30, 6003.40, 6005.31-6005.34, 6005.41-6005.44, 
6006.41-6006.44, using non- originating material 
under HS 55.05 Honduras
b 220,000 m2 21.2.10 
Fabric in HS 55.12-55.15, 60.02, 60.04, 
6001.10, 6001.22, 6001.92, 6003.30, 
6005.31-6005.34, 6006.31 -6006.34, using 
non-originating material under HS 55.06 Hondurasb 153,000 m2 21.2.10 Mexico 
Fabric in HS 55.16, 60.02, 60.04, 6001.22, 
6001.92, 6003.40, 6005.41-6005.44, 
6006.41-6006.44, using non- originating material 
under HS 5511.30 Hondurasb 281,000 m2 21.2.10 
Guatemala Yarns and fabrics of HS Chapters 52, 54-56, 
58-60 Mexico US$7.5 million  14.3.05 
Fabric in HS 55.16, 60.02, 60.04, 6001.22, 
6001.92, 6003.40, 6005.41-6005.44, 
6006.41-6006.44, using non- originating material 
under HS 55.04 or 55.07 Mexicob 2.2 million m2 21.2.10 
Fabric in HS 55.12-55.16, 60.02, 60.04, 
6001.10, 6001.22, 6001.92, 6003.30, 6003.40, 
6005.31-6005.34, 6005.41-6005.44, 
6006.41-6006.44, using non- originating material 
under HS 55.05 Mexicob 220,000 m2 21.2.10 
Fabric in HS 55.12-55.15, 60.02, 60.04, 
6001.10, 6001.22, 6001.92, 6003.30, 
6005.31-6005.34, 6006.31 -6006.34, using 
non-originating material under HS 55.06  Mexicob 153,000 m2 21.2.10 Honduras 
Fabric in HS 55.16, 60.02, 60.04, 6001.22, 
6001.92, 6003.40, 6005.41-6005.44, 
6006.41-6006.44, using non- originating material 
under HS 5511.30 Mexicob 281,000 m2 21.2.10 
a Additional limitation regarding the ratio imports by tariff lin e/total value of imports:  for El Salvador, 25% (for HS 55.13,  a ratio 
of 45% applies);  for Guatemala, 20% (for HS 52. 08, a ratio of 45% applies);  for Mexico, 25%. 
b Valid only as of 22 February 2006. 
 
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